Your credit score is the main factor that determines how much of a risk you are to lenders. Although you may know what a credit score is and how to calculate a credit score, we wanted to share three things that you most likely do not know about them.

Credit Reports Are Different from Credit Scores
A credit report shows you and lenders a thorough record of your credit history. Some of the items found on a credit report are credit accounts, debt, some public records and indication of how often you apply for credit.
The credit score takes all these factors into account and it creates an output of a numerical value that is representative of these factors.
Closing Old Credit Cards Impacts Your Score
Did you know that by closing your old credit cards, it shortens your credit history? Even though this may not seem like an issue, the longer you use credit, the better your score. In addition, your credit history makes up about 15% of your credit score.
Your credit history is not the only aspect that gets impacted. Your credit utilization also takes a hit. By closing a card, you are also lowering the amount of credit available to you. If you have any debt and you close your a card, your credit limit will be lowered which will raise the credit utilization percentage.
Scores Vary Based on the Credit Bureau
There are four different credit bureaus. The four include Experian, Equifax, Transunion and VantageScore. Each of these credit bureaus have different scoring models with different ranges. Experian has a range from 360-840, Equifax has a range from 280-850, Transunion has a range of 300-850 and VantageScore has a range of 501-990. Even though their scoring models may be different, they are each effective at calculating your credit scores.
Understanding how your credit score is calculated can help you manage your money more effectively. We want to share how lenders see your credit scores and what impacts it. There are always free credit score options that can assist you if you need it. If you have any questions, feel free to speak with one of our Member Advisors, stop by our Montebello or Cerritos branch today, visit us online at caminofcu.org or give us a call at 800-835-3400.