Your Guide On The Journey Towards Financial Progress
about Pacific Credit Report
Prioritizing The Financial Well-Being Of Every Member
It’s not always easy to make progress. That’s why we work hard to bring technology and data together to make finances easier for everyone. Our goal is to give every member the insight, knowledge, and tools to take control of their finances and build the future they’ve always dreamed of.
John Cody
CEO
the More You know
Knowing Your Credit Score Is The First Step
We know improving your financial health is a process, and there are many ways to go about it. But we believe arming yourself with knowledge and insight can simplify your journey. That’s why we give you easy access to your credit reports and scores.
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Frequently Asked Questions
We provide the tools and knowledge to help you build your credit health so you can live your life without worrying about a less than perfect credit score.
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What is a FICO Credit Score?
A FICO Score is a three-digit number based on the information in your credit reports. It helps lenders determine how likely you are to repay a loan. This, in turn, affects how much you can borrow, how many months you have to repay, and how much it will cost (the interest rate).
Only FICO Scores are created by the Fair Isaac Corporation and are used by over 90% of top lenders when making lending decisions.
What is a good FICO Score?
Every lender determines for themselves what is a good FICO Score and how they will use a FICO Score and other information within the loan approval process. Generally a good FICO score is considered to be between 670-739, very good is 740-799, and scores above 800 are considered to be exceptional.
What affects your credit score?
Common factors can affect all your credit scores, and these are often split into five categories:
- Payment History: Making on-time payments on your credit accounts can help your scores. But missing payments, having an account sent to collections or filing bankruptcy could hurt your scores.
- Credit Usage: How many of your accounts have balances, how much you owe and the portion of your credit limit that you're using on revolving accounts all come into play here.
- Length of Credit History: This category includes the average age of all your credit accounts, along with the age of your oldest and newest accounts.
- Types of Accounts: Also called "credit mix," this considers whether you're managing both installment accounts (such as a car loan, personal loan or mortgage) and revolving accounts (such as credit cards and other types of credit lines). Showing that you can manage both types of accounts responsibly generally helps your scores.
- Recent Activity: This considers whether you've recently applied for or opened new accounts.
Why is having a good credit score important?
In general, having good credit can make achieving your financial and personal goals easier. It could be the difference between qualifying or being denied for an important loan, such as a home mortgage or car loan. And, it can directly impact how much you'll have to pay in interest or fees if you're approved.
Additionally, credit scores can impact non-lending decisions, such as whether a landlord will agree to rent you an apartment. Your credit reports (but not consumer credit scores) can also impact you in other ways. Some employers may review your credit reports before making a hiring or promotion decision. And, in most states, insurance companies may use credit-based insurance scores to help determine your premiums for auto, home and life insurance.
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How can you improve your credit scores?
To improve your credit scores, focus on the underlying factors that affect your scores. At a high level, the basic steps you need to take are fairly straightforward:
- Make at least your minimum payment and make all debt payments on time. Even a single late payment can hurt your credit scores and it'll stay on your credit report for up to seven years. If you think you may miss a payment, reach out to your creditors as quickly as possible to see if they can work with you or offer hardship options.
- Keep your credit card balances low. Your credit utilization rate is an important scoring factor that compares the current balance and credit limit of revolving accounts such as credit cards. Having a low credit utilization rate can help your credit scores. Those with excellent credit scores tend to have an overall utilization rate in the single digits.
- Open accounts that will be reported to the credit bureaus. If you have few credit accounts, make sure those you do open will be added to your credit report. These could be installment accounts, such as student, auto, home or personal loans, or revolving accounts, such as credit cards and lines of credit.
- Only apply for credit when you need it. Applying for a new account can lead to a hard inquiry, which may hurt your credit scores a little. The impact is often minimal, but applying for many different types of loans or credit cards during a short period could lead to a larger score drop.
Other factors can also impact your scores. For example, increasing the average age of your accounts could help your scores. However, that's often a matter of waiting rather than taking action.
What's the difference between a credit report and a credit score?
A credit report shows a listing of your credit history. A credit score represents what's in the credit report, shown by a number typically between 300 and 850.
How long does negative information stay on my credit report?
Typically, the negative information on your credit report falls off 7 years after the date of first account delinquency. Bankruptcy information remains on your report for up to 10 years from the date filed, but it can be less depending on the type of bankruptcy.
How do I dispute information on my credit report?
If you believe something on your credit report is inaccurate, you may want to contact the lender or company that reported the information to give you more details. You can also start a dispute with the credit reporting agency that issued the report.