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Your credit score may feel like a mysterious three-digit number that quietly follows you around, but it plays a major role in many everyday financial decisions. From applying for a car loan to preparing for homeownership, understanding how your credit score works can help you feel more confident, informed, and in control.
At Members First Credit Union, we believe knowledge is power, especially when it comes to your financial wellness. With the right information and tools, improving your credit score is often more achievable than you might think.
What Is a Credit Score?
A credit score is a numerical snapshot of your credit health. Lenders use it to understand how likely you are to repay borrowed money based on your past credit behavior. While there are different scoring models, most credit scores fall within a range of 300 to 850.
In general:
Your credit score isn’t a judgment; it’s simply a tool. And because it reflects actions over time, it can change.
Why Your Credit Score Matters
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Your credit score plays a key role in borrowing decisions, including approval and interest rates for products like auto loans. A stronger score can help you qualify for better terms, potentially saving money over the life of the loan.
Credit scores also affect access to flexible borrowing options like personal loans, which members often use for consolidating debt, covering unexpected expenses, or funding planned purchases.
Beyond loans, your credit score may influence housing applications, security deposits for utilities, and even insurance rates in some cases. Understanding where you stand helps you make informed choices.
“When members understand their credit score, they can decide whether it’s the right time to borrow or whether it makes sense to wait and improve their credit to qualify for better terms. That understanding helps reduce surprises and possible disappointments,” says Christine Whittaker, Vice President of Lending at Members First Credit Union.
What Impacts Your Credit Score?
Your credit score is calculated using several key factors. Knowing what they are can make it easier to focus your efforts where they matter most.
Payment History
This is one of the most important factors. Paying bills on time shows lenders that you’re reliable. Even one missed or late payment can have an impact, so consistency matters.
Credit Utilization
Credit utilization refers to how much of your available credit you’re using. Keeping balances lower relative to your credit limits can help support a healthier score.
Length of Credit History
The longer your credit accounts have been open, the more information lenders have to assess your habits. This is why keeping older accounts open can be beneficial.
Credit Mix
Having a variety of credit types, such as credit cards and installment loans, can contribute positively when managed responsibly.
New Credit Inquiries
Applying for several new credit accounts in a short period can temporarily lower your score. Being selective about applications helps avoid unnecessary dips.
It’s also helpful to know that your credit score may look slightly different depending on which credit reporting bureau is used. The three major credit bureaus—Equifax, Experian, and TransUnion—may receive different information from lenders or update accounts at different times. As a result, your score can vary from bureau to bureau, even though the same general factors influence all of them. It’s another reason that regular monitoring and understanding trends over time can be more helpful than focusing on a single number.
How to Improve Your Credit Score Over Time
Improving your credit score doesn’t require perfection or drastic changes. Small, consistent .png?width=270&height=337)
actions often make the biggest difference.
- Pay bills on time. Automatic payments or reminders can help you stay on track.
- Keep balances manageable. Try not to use too much of your available credit.
- Apply for credit thoughtfully. Open new accounts only when there’s a clear need.
- Review your credit reports. Checking for errors and addressing them promptly can protect your score.
Progress may feel gradual, but steady habits tend to lead to steady improvement.
How Credit Score Powered by SavvyMoney Helps
Members First offers Credit Score powered by SavvyMoney, a free tool available through digital banking that helps take the guesswork out of credit monitoring.
With SavvyMoney, members can:
- Monitor their credit score regularly
- Receive alerts when their score changes
- Access personalized tips based on their credit profile
- Use score simulators to explore how certain actions may affect their score
- Learn through clear, educational insights—not complicated jargon
Seeing progress over time can boost confidence, especially for members who are just starting out or rebuilding credit
Confidence, Not Pressure
“Members First Credit Union plays a critical role by putting education, transparency, and trust at the center of the borrowing experience—so members feel confident, not rushed or pressured,” says Whittaker.
When members understand their credit score and use tools like SavvyMoney, they’re better equipped to ask questions, explore options, and make decisions that align with their long-term financial goals.
Progress, Not Perfection
Whether you’re building credit for the first time or rebuilding after a setback, remember this: progress matters more than perfection. Credit improvement is about awareness, consistency, and informed decision-making.
Every positive step—no matter how small—moves you forward.
Take the Next Step
Your credit score is a powerful tool when you understand it. Check your score, explore the insights available through SavvyMoney, and take control of your credit with confidence.
If you’re preparing for a major milestone—such as buying or refinancing a home—understanding your credit can help you plan confidently for homeownership.
Members First is here to support your financial journey, every step of the way.