YOUR CREDIT

Your credit history is like your report card. Whenever you apply for credit cards or other loans, lenders will order a credit report to see if you have a pattern of being financially responsible.

There are three main credit bureaus in the U.S.: Equifax, Experian and Transunion. When you borrow money from us, we report your payment history (both good and bad) to all three bureaus on a monthly basis. For this reason, it is important that you pay all of your bills on time.

To give potential lenders a quick snapshot about you and your payment history, each credit bureau uses an algorithm created by Fair, Isaacs & Co., to assign you a credit risk score, known as a FICO score. Many lenders are now using this number to determine which rate you should be charged when they lend money to you. The higher the number, the more likely you are to be a good credit risk and the lower your rate will be. This is referred to as risk-based lending.

The following two websites have a great deal of helpful information
about your finances:
www.mymoney.gov/mymoneyinfo.shtml#credit
www.ftc.gov/bcp/conline/edcams/credit/index.html

If someone steals your identity, he / she may open up cards in your name which do not belong to you and will affect your ability to borrow. In addition, mistakes reported to the credit bureaus may also impact upon your ability to borrow. It is widely recommended that you get copies of your credit report on a regular basis. Information may vary on the three credit reports. You may also be interested in finding about your credit score and how to improve it.

NYM Federal Credit Union has partnered with Balance to assist you with credit counseling, credit repair, debt management, first-time home purchases and general financial planning.  By calling their toll free information line at (888) 456-2227, you can speak to counselors in English or Spanish and get the help you need for FREE.  They are available Monday through Saturday.

A recent amendment to the federal Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer reporting companies to provide you with a free copy of your credit report, at your request, once every 12 months.  Consumers in New York will be allowed to get the free reports beginning September 1, 2005 by calling (877) 322-8228, visiting their website at www.annualcreditreport.com or writing to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. You are also eligible for a free credit report if you have been denied credit as a result of your credit report or are the victim of identity theft. You may reach the three credit bureaus directly at:

Equifax : www.equifax.com
(800) 685-1111

Experian : www.experian.com
(888) 397-3742

Transunion : www.transunion.com
(800) 916-8800

For a fee, you can obtain your credit score directly from the credit bureaus or from third parties, such as MyFico.com.