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Happy May, readers!
We hope that you enjoy this month's edition of the Dollars & Sense newsletter. Don't forget to submit your questions to our experts for some great (and FREE) financial advice.
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Personal Finance Topic of the Month: Secrets of Good Credit
Your credit score helps banks and other lenders predict the likelihood that you will repay a loan they make to you.
90% of banks use the FICO credit score to evaluate borrowers. According to Debt.org, the FICO score consists of the following components:
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Payment history (35% of score): Do you pay on time? Do you pay the full balance, the minimum or somewhere in between?
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Amounts owed (30%): How much of the credit you’re allowed do you use?
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Length of credit history (15%): The longer you have an account, the better the scorekeepers like it.
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Credit mix (10%): FICO likes to see a mix between credit cards, mortgages and auto loans … as long as you can afford them! Don’t take out another loan in hopes it will improve your score. This category doesn’t count enough in the overall equation.
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New credit (10%): It’s OK to occasionally open new credit, but if you are applying for several accounts in a short period, you are a risk and your score will reflect that.
Debt.org has lots of useful tips for increasing your credit score. According to the site, "nothing will raise your credit score faster or more effectively than paying bills on time and using your credit cards judiciously."
Curious about your credit history? While there is a fee to obtain your credit score, you are entitled to one free credit report from each of the three major credit bureaus per year. These reports will show you the information lenders will see when evaluating your credit (including payment history and missed payments) and can help you identify any errors. Click here to learn more about obtaining your free credit report.
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Ask an Expert Q&A
This month's question asks, "does my student loan affect my credit rating?"
Expert answer: "It depends when you took them out. Student loans do not affect your credit rating if you took them out after 1997. The only way a credit, loan or mortgage provider will know about your student loan debt will be if they choose to ask you during the application. However, if you started higher education before 1997, your student loan will, unfortunately, affect your credit score if you’re a late payer or miss a payment."
Have a question? Submit it anonymously by clicking the box below!
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This month’s Bank On Spotlight | |
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About Fifth Third
Fifth Third is a bank that’s as long on innovation as it is on history. Since 1858, we’ve been helping individuals, families, businesses and communities grow through smart financial services that improve lives. Our list of firsts is extensive, and it’s one that continues to expand as we explore the intersection of tech-driven innovation, dedicated people and focused community impact. Fifth Third is one of the few U.S.-based banks to have been named among Ethisphere’s World’s Most Ethical Companies® for several years. With a commitment to taking care of our customers, employees, communities and shareholders, our goal is not only to be the nation’s highest performing regional bank, but to be the bank people most value and trust.
Fifth Third Bank, National Association is a federally chartered institution. Fifth Third Bancorp is the indirect parent company of Fifth Third Bank and its common stock is traded on the NASDAQ® Global Select Market under the symbol "FITB." Investor information and press releases can be viewed at www.53.com. Member FDIC.
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What is Bank On Bloomington? | |
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Bank On Bloomington is an affiliate of the national Bank On program, which aims to connect consumers to safe, affordable bank accounts.
All participating Bank On Bloomington banking partners have accounts that meet national Bank On standards and are designed to serv the needs of every household, not matter their income. These banks are committed to providing services to the greater-Bloomington community and helping you become more financially stable.
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Spread the Word!
We believe quality financial information should be available to everyone, so we encourage you to let others know about our monthly newsletter and sign up on our website. First time seeing this newsletter? Subscribe Today for more helpful financial information and advice!
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Visit the Bank On Bloomington website for a list of participating Bank On accounts. Here you will find information on low cost, accessible banking services offered by each of our partners. | | |
Visit the Financial Empowerment Hub | |
Learn more about Financial Empowerment programs and tools like the Free Community Tax Service and Financial Stability Guides. | | |
Financial Disclaimer. UNITED WAY OF MONROE COUNTY IS NOT ENGAGED IN RENDERING LEGAL, TAX OR FINANCIAL ADVICE OR SERVICES. UNITED WAY OF MONROE COUNTY IS NOT A FINANCIAL PLANNER, BROKER OR TAX ADVISOR. The Bank On Bloomington Dollars & Sense newsletter is intended only to assist you in your financial organization and decision-making and is broad in scope. Your personal financial situation is unique, and any information and advice obtained through the newsletter may not be appropriate for your situation. Accordingly, before making any financial decisions or implementing any financial strategy, you should consider obtaining additional information and advice from your accountant or other financial advisers who are fully aware of your individual circumstances. | | |
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United Way of Monroe County is a nonprofit organization that improves the lives and futures of all people in the community. We bring together expertise, funding, and volunteer support to positively impact the resilience of our community, and those who live within it. In partnership with others, we work to eliminate inequities experienced by low-income and diverse populations so that all people have a safe, healthy home environment, achieve their educational potential, and increase their financial stability. We commit to building bridges across cultural, racial, religious, and economic boundaries. | | | | |
