Understanding Your Credit

When it comes to credit, more information generally means more consumer empowerment. That's why we're excited to introduce a new education video series from FICO called  Understanding Your Credit.

Credit can be confusing and complex. We've created these four initial short videos to help you better understand FICO®Score basics.

What is FICO 9:

FICO 9 is the latest version of the FICO scoring model. FICO 9 takes new considerations into account when calculating your credit score.

FICO 9 takes into account:

  1. Medical debt - Health care-related debt will have less of an impact on your score.
  2. Paid collections - Collections accounts paid in full are no longer an impact on your score.

FICO 9 broadens the scope of how your score is calculated. It's good practice to check your credit reports for any errors or disputes, use credit lightly to keep a low credit utilization percentage, and try to ensure you're making on-time payments to any loan or bill. Reminder, FICO is a predictor score based on data from your credit reports and may not reflect your full credit score.

Understanding your credit report:

Credit reports are the foundation of FICO® Scores, but what are they exactly? Watch this video to find out which information on credit reports does and doesn't impact FICO® Scores.

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What is a FICO® Score:

Every day, thousands of U.S. lenders use FICO® Scores to make more well-informed, credit-granting decisions. What does that mean? Why is it important to understand how lenders use them? This video takes a look at what a FICO® Score is and why it matters to consumers and lenders alike. Watch it to learn how FICO® Scores streamline the lending process, making it faster and fairer.

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What goes into FICO® Scores:

Whether applying for a credit card, mortgage, or auto loan, there's a good chance the lender is using FICO® Scores to help make their approval decision. The good news is, FICO® Scores are ultimately in the individual's hands — they're based on credit habits and behaviors. That's why understanding what goes into FICO® Scores is a vital part of credit health. Watch this video to learn the five key categories that factor into FICO® Scores.

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How lenders use FICO® Scores:

How do the 90% of top lenders in the US use FICO® Scores? They use them in a number of ways that matter to you. Watch this video to learn how lenders use FICO® Scores to help make lending decisions.

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Helpful Information

FICO is a registered trademark of Fair Isaac Corporation in the United States and other countries. Langley Federal Credit Union and Fair Isaac are not credit repair organizations as defined under federal and state law, including the Credit Repair Organizations Act. Langley Federal Credit Union and Fair Isaac do not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating.