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Financial Topics & Tips

Credit Score Rules


In response to lenders’ concerns about subprime mortgages and increasing default rates on other types of loans, the old rules are being changed. Although this new formula will change the way credit scores are calculated, many aspects will remain the same.

The scores will still be between 300 and 850, with higher scores, of course, being better.  Paying your bills on time and keeping your debt under control will still result in a healthy score. So what is changing? 

Compared to the old system:

 Having high credit card balances could hurt your score more.

 Piggy-backing on someone else’s good credit will be more difficult. Simply being an authorized user on an account will no longer boost your score.


 An occasional slip-up will hurt your score less; while a pattern of late payments or loan defaults will hurt more.

 Maintaining a variety of credit types, such as a credit card, a mortgage and an auto loan, will help your score because it shows you can manage payments on different kinds of loans.

Whether you are buying a home, a car or applying for a credit card – financial institutions want to know the risk they’re taking by lending you money. Your credit score can affect how much money you will be able to borrow at what terms (interest rate). Higher credit scores can often help you qualify for better rates from lenders – which can save you money!

Did you know you are entitled to a FREE annual credit report from any national consumer credit reporting agency by law? This can help you understand how creditors see you and protect your identity by keeping up with your credit report. Visit to learn more.

The Tennessee Credit Union is committed to helping you reach your financial goals by providing the tools, services and assistance you need. If we may be of service, please call (800) 622-2535 or email us at