Featured Image Your credit score is a snapshot of your credit use at a particular point in time and can be one of your most valuable assets. Your credit score is derived from detailed information about your credit history and plays an important role in your financial future. The number predicts how likely you are to pay bills and make payments on time. It can mean the difference between being able to purchase a home with a mortgage or having to continue renting. Having a good credit score can make your financial dealings easier and save you money in lower interest rates for credit cards, auto loans, home loans and other kinds of credit. In addition to lenders, landlords, utility companies, and potential employers may also take your credit score into account. Calculating your score Credit scores are based on five main areas of information in your credit report, which are added together for your total credit score. They are: Payment history (35%) – The most important factor is how you’ve paid your bills in the past, with emphasis on recent activity. Amounts owed (30%) – Owing too much or having credit cards approaching their credit limits may lower your score. Length of credit history (15%) – In general, a longer credit history is better. New credit (10%) – Opening multiple new accounts in a short period of time may lower your score. Types of credit in use (10%) – The best scores have a mix of both revolving credit, such as credit cards, and installment credit, such as mortgages and car loans. What does the score mean? Credit scores range from about 300 to 850. Most scores fall between 600 and 800, with the average about 750. The higher your score is, the better your chances are of getting a loan. Your score is also a factor in what your repayment rate will be. If you have any questions about your credit score or if we can help you in any way, please contact Member Services at 804-323-6800 or 800-285-6609.