TMCC Financial Literacy Guide

24 To calculate your credit score, companies frst pull information from your credit report, like: • how much money you owe • whether you’ve made payments on time • how long you’ve had credit • how much new credit you have • whether you asked for new credit recently • what types of credit accounts you have A higher score means that you have “good” credit and businesses believe you are less of a risk, which means you are more likely to get credit approval or insurance and pay less for it. A low score means you have “bad” credit, which means it will be harder for you to get a loan or a credit card, and you are more likely to pay higher interest rates on credit cards and loans. So what makes up your credit score? • Your payment history is 35% • The amount you owe is 30% • Length of your credit history makes up 15% of your score • New credit comprises 10% • Mix of credit types also makes up 10% of your credit HOW TO GET YOUR CREDIT SCORE Unlike your free annual credit report, there is no free annual credit score but there are a couple of ways you can obtain your credit score. Your credit score may be included in your loan or credit card statement. A non-proft credit counselor may also be able to assist you in obtaining your score. You can also get