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More than 25 factors help determine your credit score, including five which generally fall in this order of relative importance:
If you have already identified a need to improve your credit score, there aren’t any quick fixes but you can slowly work toward
your goals of a higher credit score by doing some of these:
You can get a free copy of your credit report every 12 months from each national consumer credit reporting agency (Equifax,
Experian and TransUnion). Make sure you use these free reports to confirm the information is accurate and there isn’t suspicious
activity that could be a sign of identity theft. Your credit history can impact your ability to obtain favorable mortgage rates,
credit card approvals and even jobs.
Here’s how to request your credit reports and what you should do to ensure the information is accurate:
If you are currently past due, or delinquent, on your student loan, it may be reported to the three major national consumer credit
reporting agencies. Student loan servicers report all delinquencies of at least 90 days to the credit agencies. Late payments stay on
your credit report for seven years, so it is critical that you work with your student loan servicer. If you are experiencing any difficulty
making a payment, contact MOHELA to discuss alternative options.
Each national consumer credit reporting agency’s report may vary slightly. Fair Isaac’s FICO score is one of the most commonly used
credit scoring calculations. Based on the information in your credit report, each credit reporting agency will assign you a FICO credit
score ranging between 300 (extremely high risk) and 850 (extremely low risk). Your credit score helps indicate to potential lenders how
likely you will be to pay back the loan according to set terms. Not only can the score affect your ability to receive credit at a reasonable
interest rate, it can also impact whether or not you get a nice apartment or job.