Understand Your Credit Score

What’s in a number? In the case of your credit score, a lot! It can affect your ability to buy a car, find a place to live or even get a job.


 

Credit Scores Explained

Your credit score is a number that rates your creditworthiness, or how likely you are to repay a loan.    

Lenders review credit scores when evaluating loan and credit card applications. Other institutions may also look at credit scores as part of their application process, including insurance companies, cellphone providers, landlords and even employers.

Your credit score is based on information in your credit report, which is a detailed profile of all your credit accounts, credit history and activity.

Your score is based on:

  • Your payment history
  • Your credit utilization
  • Types of credit used
  • Length of credit history
  • Recent hard credit pulls

Want to learn more? Check out these frequently asked questions for more about credit scores and credit health. 

Check your credit score for free through the UW Credit Union Web Branch and our Mobile App.

 

Chart outlining factors that affect one's credit score.

How to Improve Your Score

The higher your score, the more likely you will be approved for loans and qualify for the best rates, so it’s important to maintain a positive credit history.

Factors that help your score:

  • Paying bills on time (including credit cards, auto loan, mortgages, most utility bills and more)
  • Lower loan balances compared to the original loan amounts
  • Lower credit card account balances compared to your credit limit
  • A long history of responsibly maintained credit accounts

Factors that hurt your score:

  • Missing or late payments
  • Delinquent accounts
  • Adverse public records (bankruptcy, liens, etc.)
  • How much you owe compared to your available credit (the closer you are to your credit limits, the greater the negative impact)
  • Too much new credit — rapid opening of new accounts can lead to uncertainty about your ability to handle payments

 

Get Your Score & More

UW Credit Union members can check their credit score anytime in Web Branch, plus access their full credit report and personalized credit insights. Log in to Web Branch to get started.