Blog

Question: What is a credit score and why is it important?

Answer: A credit score is the three-digit number between 300 and 850 that is meant to give a sense of a person’s credit history. The longer your history, the better you’ve done paying your bills, the higher your score will be.

Your credit score can impact your cost of living and even your quality of life. Credit score is used to determine whether you receive a service, and what you pay for that service. Credit score is a factor in whether you get a job, buy a car, rent an apartment, or buy a house.

The gold standard for credit scores is the FICO Score, named for the Fair Isaac Corporation. It weighs five factors to come up with a final score.

Payment History - 35%
Amount of Debt - 30%
Length of Credit History - 15%
New Credit - 10%
Credit Mix - 10%

For more information about credit scores:

• Talk to a Loan Officer at 877-647-5050
• Visit any MNB location
• Schedule a meeting