Credit Scores

Credit Scores

A credit score is a 3-digit number that reflects the likelihood that a consumer will repay their debts. Credit scores typically range from 300-850. Lenders use credit scores to determine the risk involved in making a loan, the terms of the loan, and the interest rate. The higher your score, the better the terms of a loan will be for you.

Each of the three main credit bureaus — Experian, TransUnion, and Equifax — keep credit information about you that is used to calculate your credit scores. This includes your payment history, the amount of money you owe, the length of your credit history, and the number of recently opened credit accounts.

Access your FICO® Score through your USSFCU Online Banking Portal!

View your score and understand how your financial choices will affect your credit scores with an easy-to-use FICO® Credit Score Simulator.

Learn More

How Is A Credit Score Calculated?

Your credit score is fluid. Every time you apply for, use, make, or miss a payment on a loan or credit card, you build another entry on your credit report, which in turn raises or lowers your credit score.

Below are the five main variables that help define your credit score and the weight each one bares:

Payment History 35% 

If you make payments on time every month and don’t have negative public records for lawsuits, liens, bankruptcies, or foreclosure, you will do well in this category. Late payments are a negative. The later the payment — a month versus a week – the more your score gets penalized.

Credit Utilization 30%

Your credit utilization ratio measures the amount of debt you owe: the lower your credit utilization percentage, the better. A low credit utilization shows that you're only using a small amount of the credit that's been loaned to you.

Credit History 15%  

A long credit history will help your score. Credit scores are based on experience over time. Your score will improve the longer you have credit, open different types of accounts, and pay back what you owe on time.

Credit Mix 10% 

Credit mix represents how many forms of credit you have (credit cards, auto, mortgage, utilities, etc., and how well you keep up with them. For a healthy credit score, it can often be helpful to have various credit cards and loans on your credit report. But don’t apply for too much credit too fast. That’s a red flag for the credit bureaus, sending a signal that you might be desperate for credit.

New Credit 10% 

It’s ok to apply for a credit card, but if you apply for several at the same time, it may be an indication you’re using one to pay off others, and that is a negative. The same logic applies to asking for a car loan at the same time you ask for a home loan. It’s better to spread those applications out over time.

There are different credit score models, which emphasize varying factors when calculating your score.

Credit scoring models are statistical analyses used by credit bureaus that evaluate your worthiness to receive credit. The agencies select statistical characteristics found in a person’s credit payment patterns, analyze them, and develop a credit score. With so many scoring methods used to determine your credit score, the variety of models means your score can vary several points, depending on what model is used and what type of business is asking for it. 

The FICO score is the most commonly used credit scoring model. FICO is an abbreviation for Fair Isaac Corporation, the first company ever to offer credit scores. You have different FICO scores at each of the three major credit bureaus — Equifax, TransUnion, and Experian.  FICO often changes its credit score model to make it a better reflection of how creditworthy individuals are. As a result, there are currently more than 50 FICO credit score models used for different types of debt. A different version of your FICO credit score is used for a mortgage, auto loan, credit card, and more.

Additional Learning Resources

Understand Your Score

This guide from the Consumer Financial Protection Bureau contains more information on the different credit scores and where they come from.

Your Score

The CFPB

The Consumer Financial Protection Bureau offers an abundance of learning resources related to credit reports and scores. 

consumerfinance.gov

 

The content on this page provides general consumer information. It is not legal advice or regulatory guidance. We do not endorse or guarantee the accuracy of third-party information.

Members' Voice Testimonials

This credit union is the best, I love the customer service and you can't beat the interest rates. I'm happy to be a member of this great credit union.

- James · Locust Grove, GA

The branch manager introduced herself and was extremely helpful. She stated that if there is anything we ever need to please let her know. Very positive experience!

- Larry · Cumberland, MD

Greta was absolutely amazing - as always. She makes me and my parents feel valued and supported. We are forever grateful. [The Credit Union] has been hugely supportive over many years. And we feel known and cared for.

- Eliza · Washington, DC

Long as I have been with the credit union, I haven't had any problems. I also like the protection on my account.

- Charles · Upper Marlboro, MD

My overall experience at the credit union was exceptional. The staff was hospitable offering water, my service was timely and professional and the office was well lit and clean.

- Denise · Washington, DC

As a member for more than 40 years, i have always had great service from the USSFCU and know that they stand behind their great reputation.

- David · Silver Spring, MD

A top rate Credit Union, [I'm] privileged to be part of! Thank you for all you do for our family! USSFCU Credit Union was able to resolve our financial situation - vehicle, personal loans, customer service/recommendations, within 6 months. We belonged to another credit union for over 20 years, with results not even close to comparison. We switched ...

- Manuel · Bowie, MD

Your people and products are amazing. The recent [online banking] overhaul is phenomenal. [I've] been electronic banking since Tele action phone banking - paying bills with my push button landline decades ago. USSFCU is light years ahead of everyone else in terms of ease of use and client experience!

- Misty · Brookings, OR

I have been a member for more than 30 years. I no longer reside in the DC area but continue to bank with USSFCU because of the ease and the customer service.

- Tamra · Denver, CO

I have been a member for over 50 years, and I have always gotten good service with loans, when I had to have service at a branch, and when I needed to have money sent to me from my savings account. The personnel have always been friendly and treated me with respect.

- John · Fort Washington, MD

I especially appreciate being able to quickly speak with someone (not a robot) and that person has always been knowledgeable and helpful.

- Bernard · Richmond, VA

Excellent customer service streamlined and transparent process. The representatives are efficient, knowledgeable, and understanding of the type of loans offered by Credit Union.

- Erwin · Ellicott City, MD

The USSFCU behaves as a credit union ought to behave. The staff works with and for the members, not for a corporate board. Interest rates for a car loan, a home improvement loan, and a mortgage are low and terms are transparent.

- Ruth · Takoma Park, MD

Staff are courteous and friendly to work with. Very knowledgeable about services and products offered or available. Excellent follow-up with customers.

- Jacquelyn · Sanford, FL

I have appreciated USSFCU services for many years since I left my work on Capitol Hill. I have appreciated the occasional webinars on purchasing a home or retirement planning.

- Jamie · Washington, DC

I have been a member since 2006, and have always appreciated the customer service response to any concern or query. In addition, as I have traveled extensively, USSFCU has provided support and access.

- Kathleen · Ukiah, CA

I've had a credit union account for decades, even though I no longer work on Capitol Hill. I now have two accounts. I've been able to do all of our banking remotely, by app or by phone.

- Richard · Washington, DC

I have been a USSFCU member for almost 20 years. There is nowhere else I want my money to be. I always receive excellent service.

- Nicole · Alexandria, VA

I deeply appreciate the stellar service, the proficiency, the professionalism, and the kindness. I am truly honored and grateful to bank with a financial institution that treats customers like family.

- Angela · Alexandria, VA

Read More testimonials.