JOINT BASE SAN ANTONIO-RANDOLPH, Texas –
Joint Base San Antonio members learned about credit reports, credit scores and the impact those reports and scores could have on their ability to obtain a loan, mortgage or additional credit at a personal financial readiness class June 24 at the JBSA-Randolph Military & Family Readiness Center.
The class, “Understanding Your Credit,” was facilitated by representatives from Randolph-Brooks Federal Credit Union, a member-owned, nonprofit financial cooperative.
Evelyn Garcia, RBFCU vice president of collections and special services, said a credit report consists of information from three credit reporting agencies – Equifax, Experian and TransUnion. The report includes personal information, account information and public record information, such as liens, financial judgments and bankruptcies.
Other information in a credit report includes when an individual applies for credit, a mortgage or insurance, or rents an apartment.
Garcia said a credit score is based on the information provided in the credit report, including an individual’s payment history, debt they are carrying and available credit.
In order to make decisions to provide services, lenders use the FICO score. FICO, which stands for Fair Isaac Co., is a public company that provides analytics and decision-making services, including credit scoring, for financial services companies to make complex, high-volume decisions.
“Credit scores are really important these days,” Garcia said. “A lot of creditors are using a lot of those scores to make loan decisions. It allows an individual to benefit from lower interest rates that are offered from different lenders.”
FICO scores range from 300 to 850.
Christina Lagunas, RBFCU credit dispute analyst, said a good credit score is 650 and higher.
Garcia said credit reports can be looked at by employers when they are considering hiring someone. Also, when underwriting a policy, insurance companies may come up with a premium based on information from a credit report.
Individuals who make their payments on time will have a higher credit score, while those individuals who are late on their payments will see their credit score get lowered, Garcia said.
“It’s important to try to always maintain and pay on time back to your creditors,” Garcia said.
Lagunas said individuals can also maintain a high credit score by making their payments on time and lowering their balances on any type of loans they have.
The Fair Credit Reporting Act requires each of the three credit reporting agencies provide free copies of credit reports once every 12 months to individuals who request them. Free credit reports can be ordered at http://www.annualcreditreport.com or by calling 877-322-8228.