Unless you plan on paying cash for a home, vehicle, or other big purchase, getting to know your credit score is a must. Even if you never borrow money, your credit health can influence where you live, how much you pay for certain services, and if you receive a job offer from your dream employer.
Credit scores are the numerical summary of your credit behaviors. FICO® and VantageScore® are the two main credit scoring agencies. They use the data in your credit history reports to calculate your score, which usually ranges between 300 and 850. While each scoring agency uses different proprietary credit scoring models, both agree that higher scores represent stronger credit histories.
Whether in the form of a numerical score or a detailed report, a strong credit history tells potential lenders, employers, landlords, and service providers that you have a history of financial responsibility. Here are a few examples of how they might use the information:
Your credit score represents the data in your credit history reports, so focus on the behaviors that credit bureaus track to make progress in improving your score.
Take charge of your financial future by understanding the basics of credit and using that knowledge to improve your credit score.
Vermont Federal Credit Union is a $900 million-plus full-service, not-for-profit, cooperative financial institution that has served Vermonters for more than 70 years, with eight locations currently serving over 50,000 members. Members are part of a cooperative, meaning they share ownership in the Credit Union and elect a volunteer board of directors. Vermont Federal Credit Union provides membership to anyone who lives, works, worships, or attends school in all of Vermont. Vermont Federal Credit Union is committed to supporting its communities and helping Vermonters prosper, no matter where they may be on life’s journey. Learn more about Vermont Federal Credit Union.