Dollars & $ense
Volume I
C ont a c t Us
Phone : 214- 574-2000 or
800- 388- 7 889
Fa x : 214- 574 -3110
by Mobility Credit Union
What is a credit score and why does it matter?
Your credit score is a three-digit number derived from detailed information about your credit history, and it can be
one of your most valuable assets. Your credit score will play an important role in your financial future: it can mean the
difference between being able to purchase a home with a mortgage or having to continue renting. It can also drastically
affect the rate of interest you pay on your loans (car loans, home loans, privately consolidated student loans, etc.). The
higher (and better) your credit score, the less interest you will have to pay each month and overall. Your credit risk is
evaluated, largely by reference to your credit score, any time you apply for a credit card or any type of loan. Keep in
mind, though, that landlords, utility companies, and potential employers may also take this information into account.
A poor credit history may mean having to make a large deposit in order to open an account with the electric company
or to sign a new lease. It could even mean the
loss of job opportunities.
helpful place to bank”
Web : mobi lit yc u.com
Mai l: P O B ox 630428
Ir v i ng , T X 75063
L o c at i ons & Hou rs
Main O ff i ce
8 384 N B elt L ine R d
Ir v i ng , T X 75063
L obby Hours & D r iv e Thr u
Various organizations provide different credit
scores, though all are similarly calculated.
The FICO score is the best know and most
widely used credit score. A FICO score
ranges from 300 to 850, and those with scores
of 740 and higher are typically entitled to the
best interest rates.
Mon - Fr i 8: 00A M -6:00PM
S atu rd ay 10: 00AM -1:00PM
Article Courtesy of:
Personal Finance @ Duke
C onv e ni e nce Branch
2 101 Va lwo o d Pkw y
Far me rs Branch , T X 75234
D r ive -T hr u Hours
Mon - Fr i 3: 00P M-7:00PM
Mi d - Cit i e s Branch
6 0 6 Grap e v i ne Hw y, Ste. A
Hu rst, T X 7 6054
L obby & D r ive T hr u Hours
Mon - Fr i 8: 00A M -6:00PM
S atu rd ay 10: 00AM -1:00PM
Spr ing Cy pre ss Branch
2 2 5 6 0 Tomb a l l Pkw y, Ste. 100
Houston , T X 77070
L obby & D r ive T hr u Hours
Mon - Fr i 8: 00A M -6:00PM
S atu rd ay 10: 00AM -1:00PM
What is a credit report and what should I do with it?
Your credit report provides a snapshot of your credit history and breaks down many of the factors that determine
your credit score. Studies have shown that serious errors that affect credit scores are common on credit reports.
Recognizing the importance of individuals’ credit, the federal government requires each of the major credit reporting
agencies to provide a free credit report annually. Go to www.annualcreditreport.com to order your free credit report
from Equifax, Trans Union, and/or Experian. You can also visit the credit reporting agencies’ websites directly.
Review your credit report regularly and check for errors. If you see any errors you can dispute them by contacting
the company or lender in question or by contacting any of the three reporting agencies (each has a dispute form on its
website). Monitoring your credit report will
also enable you to detect when someone else
has opened an account in your name and thus
help you thwart identity theft. Your free credit
report will not give you your credit score; you’ll
have to pay ($7.95) for that. It’s a good idea
to check your credit score before you have to
apply for credit. The higher your score, the
more favorable interest rate you will receive.
Remember, you cannot “fix” your credit score,
but over time, you can improve it.
Article Courtesy of:
Personal Finance @ Duke
Auto Loans | Mobile Banking | Free Checking | Mortgage
Saving | Home Equity | ATMs | Credit Card
Come see why MOBILITY Credit Union has been
the helpful place to bank for 50 years
Dollars & $ense
mobilitycu.com
How is my credit score calculated?
Your credit score is calculated based on your payment history, amounts owed, the length of your credit history, the extent of your new credit, and the variety of
credit types you have used. So what information is included in these factors?
Payment
Hisory
• On-time payments and late payments (including amount and duration of
delinquency) for all accounts including credit cards, mortgages, and installment
loans (e.g., car loans)
• Current delinquencies and length of time that has passed since prior
delinquencies
• Adverse public records including bankruptcy, civil judgments, and liens
• Debts that have been turned over to a collection agency
• Number of accounts in good standing
Amounts Owed • Credit utilization, i.e., ratio of total monthly balances to total credit limits
• Number and amount of monthly balances
• Ratio of installment loan debts to amounts initially borrowed
• Account ages (for credit cards, etc.)
Length of
Credit History • Date of last activity on each account
Extent of New • Percentage and age of accounts recently opened
• Number and date of recent credit inquiries (due to applying for new credit card
Credit
accounts, utility accounts, mortgages, etc.)
Types of Credit • Diversity of types of credit used (credit cards, retail accounts, mortgages,
Used
installment loans, etc.)
• Real estate loans are more complex to manage and thus have an especially strong
positive impact
Article Courtesy of:
Personal Finance @ Duke
How can I improve my credit score?
If your credit score is low and there aren’t any errors on your report, there are several steps you can take to improve your credit score. But there is no quick fix:
improving your score is largely a matter of time (so don’t let it go south in the first place!).
Keep your credit
utilization below 25%.
• Pay down your credit cards to at most 25% of their limit. If you are approaching using 25% of your credit limit, use a different form
of payment. Your credit utilization for each account is relevant, as well as your overall debt-to-credit ratio.
• If you open a new account to increase your total credit limit, don’t charge anything to it so that your credit utilization decreases. By
the same token, don’t close existing accounts that you aren’t using.
• Revolving account (e.g., credit cards) utilization is weighted more heavily, so pay those debts down before other debts such as
installment loans.
• Business cards are jointly backed by the individual to whom they are issued, and thus treated exactly the same way as an individual
card. Keep the balance down.
Don’t use credit card
issuers that don’t report
your credit limit.
• Some Credit Card Issuers don’t report credit limits for their cards. As a result, the credit agencies typically use the highest balance
that has ever been reported on an account as a proxy for the credit limit. Unless you have ever maxed out the card, this will result in
the credit agencies overestimating your utilization for that account.
Become an authorized
user on a credit card
account that has been
open and in good
standing for a long time.
• If you are an authorized user on someone else’s account, that account will show up in your credit report as if it were your own. No
one will know the difference, and your credit score will benefit from all the positive factors associated with that account.
• Lengthier credit history helps your credit score more, so get added to accounts that have been open for a long time.
• Getting added to accounts with low utilization will help your score more. This can give your credit a huge boost in a short time,
and all it takes is a simple phone call. Ask a friend or family member with good credit history to call their card issuer and add your
name to the account. You can tell him or her you do not need physical possession of a card or any information about the account.
Ask a creditor for
forgiveness.
• You can always ask a credit card company or other creditor to have negative information removed from your account. They want to
keep their customers happy, so they will might oblige your request if you have regularly made your payments on time.
Get your student loan
payments back on track.
• Even if you have missed student loan payments or defaulted, you can return your Sallie Mae-backed student loan accounts to good
standing by making approximately 12 consecutive on-time payments.
Dispute old negative
accounts.
Settle debts will collection
agencies
• If you have any old unpaid bills and a reason to dispute their legitimacy (e.g., a medical expense that you contend your insurer should
have paid), you can contact the credit reporting agencies and tell them the debt is not yours.
• Particularly for debts smaller than $500, you can often get the collection agency to agree to have the debt deleted from your credit
report in exchange for payment in full. Before paying, get a written agreement from the collection agency in which they promise to
contact the credit reporting agencies and have the debt deleted.
• Initiate disputes through the credit reporting agencies or the original creditor if you find any of the following:
• incorrect late payments, collection accounts, or charge-offs (debts written off as unlikely to be collected)
• accounts incorrectly listed as anything other than “current” or “pays as agreed”
• old negative items that should have been erased from your credit report after seven years (10 if related to bankruptcy)
• accounts incorrectly listed as “closed by the credit grantor” when they were in fact closed by mutual agreement
• If for some reason you feel compelled to close some of your accounts, try to close newer ones and keep the older ones, which reflect
more positively on your creditworthiness. Also, be aware that if you don’t use a particular credit card for a number of years, the issuer
might without warning notify you that they have closed the account.
Correct errors.
Preserve the length of
your credit history.
Article Courtesy of:
Personal Finance @ Duke
4430
GOOD
THRU
MOBILITY CU VISA® Platinum Credit Card
0%
Introductory APR*
NO Late Fees
NO Annual Fees
NO Balance Transfer Fees
*APR is Annual Percentage Rate and the introductory rate is for six months from the time of card issuance after which the rates become a
FIXED 9.99% to 15.99% based on your creditworthiness. Offer subject to change without notice.