Credit Basics

How do I improve my credit score?


1. Improve your payment history by paying all your bills consistently and on time.

2. Get current on delinquent accounts to reduce your outstanding debt and to avoid having delinquencies reported.

3. Build on your credit history because the longer you’ve had credit, the better the score.

4. Don’t open accounts you don’t need, as inquiries made on your credit report will lower your score.

5. Try to keep balances low. A large number of revolving credit accounts with open balances, can result in a lower score. Try to have a more diverse credit profile which consists of installment accounts, revolving credit balances and mortgage.


Credit Basics

How is credit determined?


Credit scoring was developed in 1958 by Fair Isaac Corporation to help predict whether a borrower will repay their loan on time.

1. The resulting score is commonly called a FICO score, after Fair Isaac.

2. When a credit bureau calculates your score, they do not take race, religion, age, sex or marital status into account.

3. Neither does your income, occupation or employment history figure into the score, nor if you’ve been turned down for credit.