Credit Score FAQ

Credit Score FAQ

• What is a credit score?

  Your credit score is a number that summarizes your credit risk, assessing your likelihood of defaulting on payments you owe (i.e., going 90 days or more without paying a debt obligation).

  Scores are based on a snapshot of your credit file at particular consumer reporting agencies at a particular point in time, helping lenders to evaluate your credit risk. Your credit score can influence the credit that’s available to you and the terms or interest rates that lenders offer you, if any, when you apply for a loan or line of credit.

  Your credit score may be utilized by various entities to assess your creditworthiness and financial reliability:

  • Lenders – When applying for or refinancing debt, to help assess the likelihood that you will fall behind on the payment of a loan
  • Landlords – When determining your ability to pay rent on an apartment and how much a security deposit will be required to sign the lease
  • Mobile Phone Companies – When determining payment plans you are eligible for and whether or not a security deposit will be required
  • Utility Companies – When determining whether or not to require a security deposit, and if so, how much of a deposit to require
• What is VantageScore®?

  There are three different major credit reporting agencies, Experian, TransUnion, and Equifax that maintain a record of your credit history known as your credit file. Your credit score is based on the information in your credit file at the time it is requested. Your credit file information can vary from agency to agency because some lenders report your credit history to only one or two of the agencies. Since the information in your file can change over time, your credit score also may be different from day-to-day. Different credit scoring models can also give a different assessment of the credit risk (risk of default) for the same consumer and same credit file.

  The three credit reporting agencies, Experian, TransUnion, and Equifax created VantageScore® as an independently managed joint venture in 2006. Since then, the company has released five credit scoring models. The most commonly used scores are the VantageScore® 3.0 and VantageScore® 4.0 models with a score range of 300 to 850. A higher credit score represents a greater likelihood that you'll pay back your debts, so you would be viewed as being a lower credit risk to lenders. A lower score indicates to lenders that you may be a higher credit risk.

• How do I check my credit report?

  Because your credit score is based on the information in your credit report, it is important to make sure that the credit report information is accurate. You may get a free copy of your credit report annually. To request a copy of your credit report, please visit: www.annualcreditreport.com. Please note that your free credit report will not include your VantageScore® or FICO® Score information.

• Why does my credit score fluctuate/change?

  There are many reasons why a credit score may change. Your current credit score takes into consideration the information that is in your credit file from a particular consumer reporting agency (CRA) at the time it is generated. So, as the information in your credit file at that CRA changes, your VantageScore® credit score can also change.

  Review your credit score's key score factors, which explain which factors from your credit report or recent credit history most affected the credit score. Comparing key score factors from two different time periods can help identify causes for a change in a credit score. Keep in mind that certain events such as late payments or bankruptcy can lower your credit score quickly.

• Why is my credit score at Visions different from other scores I've seen?

  There are many different credit scores available to consumers and lenders. In general, your credit score may vary depending on:

  • The Source Credit Bureau: Each credit bureau has different quality control practices for managing data in credit files.
  • The Credit Scoring Model: VantageScore® has released several credit scoring models, and other companies (such as FICO® Scores) have numerous models available, too, and even develop models that are geared towards specific industries. Lenders who use a credit score as part of their underwriting or to manage accounts understand the variety that exist and do not use different scoring models interchangeably.
  • The Timing: Your credit file can be updated daily as lenders report to the credit bureaus over time, which means your credit score could vary over a few days as new accounts are added or closed, balances and lines of credit updated, and payments reported.
  • Third Parties: If you’re viewing a score provided by a third party, such as your credit score in digital banking, the score is unlikely to be real time and will be updated periodically.
     

  When reviewing a credit score, it's a good idea to take note of the score date, consumer reporting agency credit file source, score type, and range for that particular score.

• Why is my credit score not available in digital banking?

  There could be a few reasons for a score not being available, such as:

  • You are a new member
  • Your credit history is too new
  • You've chosen to have a credit freeze on your file
  • The information we have on file for you may need to be updated. To review your contact information and account details, you can call 800.242.2120 or speak with a representative at your local branch
• Will receiving my credit score in digital banking or at a Visions branch impact my credit?

  No, the credit score we provide to you is performed using a soft pull and will not impact your credit. 

• How is my credit score calculated?

  Your VantageScore® 4.0 credit score is calculated from many different pieces of data in your credit report, such as:

  • Payment history (extremely influential)
  • Total credit usage (highly influential)
  • Credit mix and experience (highly influential)
  • New accounts opened (moderately influential)
  • Balances and available credit (less influential)
• What is a FICO® Score?

  Your FICO® Score is a number that summarizes your credit risk. Scores are based on a snapshot of your credit file at particular consumer reporting agencies at a particular point in time, and help lenders evaluate your credit risk. Your FICO® Score can influence the credit that’s available to you and the terms, such as interest rate, that lenders offer you.