THE IMPORTANCE OF
CREDIT SCORES

A credit score is a number used to make a decision on a loan or other credit. Many lenders use a system developed by Fair Iassac and Company called the FICO score - a point system based on your credit history to predict credit worthiness (see chart, previous page). Your credit score is most influenced by:

Late payments, a past bankruptcy, debt collections or a past court judgment ordering you to pay money as a result of a lawsuit will negatively affect your credit score. Too much debt relative to your income is also a warning sign to creditors and will also lower your score.

In general, the better your credit score, the better your chances of getting credit with an attractive interest rate. Since your credit score is highly dependent upon your credit report, it is critical that your credit report is accurate.

Your score, along with an explanation of how the score was derived, is available from any of the three major credit bureaus. Each bureau may have different information about you, so your score may vary from one company to another.