What is my credit score and how is it used?
A. Your Credit Score is a three-digit number that represents your credit rating. Fair, Isaac and Company, the credit scoring standard, provides credit bureaus (Equifax, Trans Union and Experian) with a credit score formula. The bureaus then use this formula to generate your three-digit credit score. Using a scale widely accepted by the lending industry, the majority of Personal Credit Scores are between 400 and 900. Higher scores are better. The rational is that the higher the score the less risk there is to the lender that you will not repay the loan. How Your Credit Score Is Determined: 1. Payment History: Approximately 35% of your score. 2. Amounts Owed: About 30% of your score. 3. Length of Credit History: About 15% of your score. 4. Pattern of Credit Use: About 10% of your score. 5. Types of Credit in Use: About 10% of your score. The Bank will use your credit score as part of all of the information it considers when making a loan decision. A low credit score in and of itself will
