All About Credit Scores


Checking your own credit won't hurt your credit scores. When you check your own credit reports or scores, the request is processed differently than when a lender checks your credit. Checking your own credit won't hurt your scores. 

Credit scores range from 300 to 850. Higher scores represent a better credit history and make you eligible for lower interest rates. 

The score you receive can differ depending on which credit reporting company is used. CFCU looks at FICO scores from all three companies and uses the middle score for deciding what rate to offer you. If you are applying for a mortgage jointly with a co-borrower, CFCU will look at both borrowers' middle scores and use the lower one to decide the rate and approve the loan. 

The rate you are offered on a mortgage can vary quite a bit depending on your credit score. Your credit score is the only one factor in CFCU's decision, but it's an important one. While there are no firm rules about exactly how your credit score affects the interest rates you may be offered for a home loan, in general: 

  • The best rates go to borrowers with credit scores in the mid-to-high-700s or above. These borrowers typically also have the most choices available to them. 
  • Borrowers with credit scores in the high-600s to the low-700s typically pay somewhat higher rates. 
  • Borrowers with credit scores in the low-to-mid-600s range generally pay the highest rates and have the fewest choices. Borrowers in this range may have trouble qualifying for a loan, depending on the loan type.
  • Borrowers with scores below 600 may want to improve their credit before applying for a mortgage. If you need help improving your credit, contact ?????

A housing counselor can help you get your credit report and check for errors. You can find a HUD-approved housing counselor online or by calling ...????

Errors on your credit reports can reduce your scores unnecessarily. An error in your credit reports could mean a higher interest rate and less money in your pocket-so it is important to correct any errors well before you apply for a loan. Check your reports carefully-if there are any errors, file a dispute with the credit reporting company as soon as possible. If you are unable to resolve the dispute, you can submit a complaint to the CFPB?????

Be wary of companies offering to "fix" your credit score. Be especially wary if they charge an upfront free-these companies are often scams. Never pay in advance. Don't believe promise of anyone who says that they can get negative, but correct, information off your credit report. If you need help improving your credit, contact a HUD-approved housing counselor online or by calling 1-800-569-4287. 

If you don't have a credit report or score, consult a housing counselor. If you haven't used credit cards or taken out a loan before, you may not have a credit report. Or if you've only had a little bit of credit, your credit file may not contain enough information to calculate a score. A housing counselor can help you figure out what your options are.