At MTC Federal we help our Members get on the road to a stronger financial future. If you have experienced credit challenges, you deserve the opportunity for a fresh start. Our goal is to educate all members on how to improve and manage their credit score.
OFI-IDEOLOGY
- One Member at a Time
- Financial Education
- Custom Solutions
Show that we WANT, NEED, and EXPECT the business.
BEWARE OF THE VANTAGE CREDIT SCORE
- The Vantage Score is not the same as the FICO® Score.
- Vantage scores range from 501 to 990 and do not correlate with FICO® Scores.
- 95% of financial institutions use the FICO® Score.
UNDERSTANDING YOUR FICO® CREDIT SCORE
- FICO® Scores range from 300 to 850
- Uses three Credit Bureaus Equifax (Beacon), TransUnion (Empirica) & Experian (Fair Isaac)
RANGE OF SCORES:
- 730 – 850 = A+
- 680 – 729 = A
- 640 – 679 = B
- 600 – 639 = C
- 550 – 599 = D
- 549 & Below = E
WHAT MAKES UP YOUR CREDIT SCORE?
WHAT ACTIONS WILL HURT YOUR SCORE?
- Missing payments
- Credit cards at capacity ( ie. maxing out credit cards)
- Shopping for credit excessively
- Opening up numerous trades in a short time frame
- Having more revolving debts in relation to installment debts
- Closing credit cards out
- Borrowing from finance companies
HOW CAN YOU IMPROVE YOUR SCORE?
- Pay off or pay down on your credit cards
- Do not normally close credit cards as it may decrease your capacity
- Move your revolving debt into installment debt
- Continue to make payments on time
- Slow down on opening new accounts
- Acquire a solid credit history with years of experience
TIME IS YOUR FRIEND WHEN YOU’RE TRYING TO REBUILD YOUR CREDIT:
- 40% = Current to 12 months
- 30% = 13-24 months
- 20% = 25- 36 months
- 10% = 37+ months
IT PAYS TO HAVE A GOOD SCORE:
| Loan Amount | Term | Score | Rate | Payment | Total of Payments | Interest Paid | Savings |
|---|---|---|---|---|---|---|---|
| $20,000 | 60 months | 770+ | 2.95% | $359.00 | $21,540.42 | $1,540.42 | $0 |
| $20,000 | 60 months | 720-769 | 3.95% | $367.95 | $22,077.29 | $2,077.29 | $536.87 |
| $20,000 | 60 months | 680-719 | 6.95% | $395.66 | $23,739.85 | $3,739.85 | $2,199.43 |
| $20,000 | 60 months | 640-679 | 12.95% | $454.65 | $27,279.00 | $7,279.00 | $5,738.58 |
| $20,000 | 60 months | 600-639 | 15.95% | $485.92 | $29,155.20 | $9,155.20 | $7,614.78 |
| $20,000 | 60 months | <599 | 16.95% | $496.60 | $29,795.98 | $9,795.98 | $8,255.56 |
Information courtesy of Lending Solutions Incorporated.
As a Member of MTC Federal Credit Union, you have access to a FREE CREDIT ANALYSIS.
An in-depth review of your credit report with tips to improve your score. A Credit Analysis can help you pay down debt, get completely out of debt, reduce your interest rates, lower monthly payments and improve your credit score. Scheduled a FREE 30 minute credit analysis with an MTC Federal Financial Expert to create a solution customized to your needs.