Credit Score Education
Your Guide to Financial Success
Empower your financial future with a great credit score.
Having a solid credit score is key to your financial health, allowing consumers to access lower interest rates and better terms on mortgages, credit cards, auto loans and more. Lenders look at your score to see how well you have handled credit in the past, using it as an indicator of how likely you are to pay back the money they lend you in the future.
Credit scores usually range from 300 to 850; the higher the score, the better your credit, and the more attractive rates you’ll be offered. Could your credit score use a boost before applying for a loan? Here’s what you need to know.
How your credit score is determined.
You can’t build your credit score if you are not sure how it’s created. There are three main bureaus that calculate your credit score, but there isn’t a specific formula that dictates your score. However, there are five key factors that influence it:
- On-time payment history: Most credit experts believe this is the most important factor, accounting for as much as 35% of your credit score. This number can go down with even one late or missed payment so it’s vital to always pay your bills on time.
- Length of credit history: This metric is based on how long you have been building your credit. The longer you have been borrowing money and paying it back on time, the higher your credit score.
- Credit utilization: This is related to how much of your available credit you are using. Say you have a credit card with a limit of $1,000. Even if you pay your credit card bill in full every month, experts suggest that you still should only use up to 30% of your available credit; in this case, $300.
- How much credit you’ve applied for: On the other hand, lenders don’t like to see that you’ve applied for multiple credit cards or loans all at once. That’s because even if you don’t use them, the lender will see that theoretically you could max them out all at once, which makes you a less-attractive credit risk.
- Credit mix: This is the different types of credit that you have, from credit cards to auto loans, mortgages and student loans.
Stay on top of your credit by signing into DataNet and DataMobile.
Your credit score is a vital part of your financial profile, and it can have a significant impact on your ability to access credit and loans. With our credit score monitoring service, you'll have all the information you need to stay on top of your credit and make informed decisions about your financial future.
Here's what you can expect:
- Real-time credit score updates and alerts
- Detailed insights into the factors affecting your score
- Credit report monitoring with regular updates and alerts
- Expert advice and guidance for improving your score and managing finances.
Log in to DataNet online banking or the DataMobile app to track your credit score, monitor your credit report, and get the best loans from Valley Strong!
- When using DataMobile, click the hamburger menu button located at the bottom right, then click the "Credit Score and Report" widget.
- When using DataNet, click the "More" button and a menu will appear revealing the "Credit Score and Report" widget.