How it works and how you can make yours better!

Your credit score can affect your ability to purchase a home, rent an apartment, buy a car or receive favorable insurance rates.

Though you may not need a loan or home now, you never know what the future holds. Keeping your score as high as possible is usually a good idea. We want to help you establish and maintain a healthy credit score.

How your score is calculated How to improve your score
Payment History = 35%
  • Paying your bills on time is the #1 factor in maintaining a good credit score.
Amounts Owed = 30%
  • This is the total of your combined credit balances compared to credit limits. However, the scoring is also affected by how many cards are close to the credit limit, regardless of total capacity.
Length of Credit History = 15%
  • The longer you've had credit, the better your score will be.
New Credit = 10%
  • The number of new accounts you have opened in the last 6 to 12 months.
Types of Credit = 10%
  • Revolving, installments, mortgages, etc. A variety of credit is better.

  1. Make payments on time. This is the most powerful step to improving your credit.
  2. Keep your oldest accounts active. Long term accounts show stability.
  3. Keep balances below 60% of your credit limit.
  4. Don't close out old accounts. This can increase your balance to credit limit ratio.
  5. Minimize new credit. Don't apply for credit you don't need. Too many credit applications can decrease your credit score.
  6. Keep track of your credit. Access your credit report at least once a year so you can spot inaccuracies or fraud and act quickly.