Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

CU System
Mountain America CEO helps TV audience understand credit scores
SALT LAKE CITY (7/23/14)--To help viewers understand how credit bureaus calculate credit scores, Sterling Nielsen, president/CEO of Mountain America CU, West Jordan, Utah, with $3.9 billion in assets, offered up some insight during a recent appearance on KSL-TV 5 's "Studio 5 with Brooke Walker" in Salt Lake City.

"There are three main (credit reporting agencies), and they all look at things just a little bit differently," said Nielsen.

"First of all you need to make sure that you watch that credit history," he advised. "Make sure that you make your payments on time; they're going to look at how often you make a late payment, how late that payment is (and) how many accounts are late. These all play a big part in your credit score."

Next, Nielsen said, consumers should pay attention to their levels of credit utilization and make sure they're not using too much of their limits.  

"A lot of people think, 'Hey, I have a $5,000 credit card (limit), I might as well charge it all up,'" Nielsen said. "But that hurts your overall credit score. You're better off keeping your utilization down to about 30%," even if you pay off your balance every month. 

Finally, consumers should work to build a strong credit history, Nielsen said.

"You want to show a period of time when, not only were you paying your bills on time, but you were managing credit responsibly," Nielsen said. "The length of time is quite important in managing your credit score."

Nielsen added that consumers with credit scores of 700 or above likely will receive the most advantageous interest rates, while those with credit scores below 600 will not fare as well.


RSS





print
News Now LiveWire
What role are #creditunions playing in @gatesfoundation's 2030 vision of financial services? Read #NewsNow Monday
1 day ago
Consumers fear inaccurate info lingers on credit reports, says @FTC study Read @CUNA's News Now: http://t.co/RzNLMnaROO
1 day ago
@PCUA has formed a @LinkedIn networking group for former bankers turned #creditunion employees.
1 day ago
.@politico reports Democrats haven't picked the city yet, but their 2016 convention will be held the week of July 25.
1 day ago
.@cuna, @DCUC_HQ urge @CFPB to exempt #CUs from changes to Military Lending Act rules cuz CUs aren't part of the targeted problem. NN Monday
1 hour ago