credit scores and credit reports
By definition, credit is an agreement where a borrower receives something that has value and agrees to pay the lender at a later time.
Credit is necessary for making purchases and financial decisions. Examples include getting a credit card, credit limits, getting a loan
A credit score is a number assigned to someone meant to show their likelihood of repaying debt based on someone’s credit history. People want their score to be as high as possible because it signals that the borrower is dependable and low risk.
There are five components of a credit score in decreasing importance:
Payment History
Amounts Owed
Length of Credit History
Credit Mix
New Credit
Two ways to view your credit report:
soft pulls & hard pulls
Soft pulls do not affect your credit history and it’s how you check your credit score for free with the previously listed resources
Hard pulls do affect your credit history and they are done by lenders and credit card companies. Hard pulls stay on your credit report for two years (When you apply for a loan with GUASFCU, we do a hard pull)
A historical record of how and when you pay your bills, how much debt you have, and how you have been managing credit accounts.
Includes information about: accounts you have not paid, accounts turned over to collections company, bankruptcy filings, assets that have been repossessed
In addition to, personal information, employer history, consumer statements, account information, and public record inquiries.
- Pay your bills on time
- Staying current on missed payments
- Pay installment loans
- Don’t overextend your credit
- Apply for credit cards designed for students
- The GUASFCU Credit Builder Partnership
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