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The MTC Federal Relationship Philosophy: Financial Education

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?

FICO-Score-Chart-1.png

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:

Note: The “E” paper member will end up paying $137.60 more than the “A+” member pays per month. The cumulative interest is $8,255.56 more than the “A+” member has to pay over 60 months.
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.

Please allow 30 to 45 minutes to complete Financial Analysis.