What Makes Up a Fico Score?

Your credit score is a number that represents your credit history and current credit risk. Credit scores are based on information in your credit report. They are called FICO scores because Fair Isaac Corp. developed the software that credit bureaus use to calculate them. Most lenders use your credit score to decide whether they will offer you credit, how much they will lend you and the terms and conditions of that credit. Scores range from 300 to 850, with a score above 750 considered excellent credit. Credit bureaus consider the following categories of information in calculating your credit score:

1) Payment History – Your payment history makes up 35% of your FICO score. Payment history includes how many and which accounts you paid on time or late. If you have an account that is or has been delinquent, credit bureaus consider the amount and length of the delinquency and how long ago you were delinquent. Late payments, foreclosures, debt collections and adverse public records (bankruptcy, judgments lawsuits, liens and wage attachments) damage your score and stay on your credit report for at least 7 years.


2) Total Debt – 30% of your score is based on how many accounts you have and how much you owe by type of account. An account could be a line of credit, such as a credit card, or an installment loan, such as a car loan, a mortgage or student loan. FICO scores also take into account how you use your credit: how much of each credit limit you have borrowed (this is called capacity) and how much you still owe on any installment loan.


3) Length of Credit History - FICO scores factor in the ages of your accounts and how long since you have used each account. This category makes up 15% of your score. A longer credit history improves your score and reduces your credit risk.


4) New Credit – 10% of your score is based on new credit on your credit report (accumulation of debt in the last 12-18 months), including the number and proportion of accounts you recently opened and when you opened them. The number of credit in inquiries on your report, and how recently they occurred, also affects your credit score. Credit inquiries can happen when a legitimate business checks your credit.. Multiple recent inquiries, if you initiated them by applying for credit, can harm your score.

5) Credit Mix – the final 10% of your FICO score is calculated according to credit mix. Having different types of credit (credit cards, retail accounts, installment loans and mortgages will help your credit.

What Doesn’t Affect Your Credit?
- Debt Ratio
- Income
- Length of residence
- Length of employment

What actions will hurt the score?
- Missing payments (regardless of dollar amount.. it will take 24 months to restore credit with one late  pay)
- Credit cards at capacity (ex. maxing out credit cards)
- Closing credit cards out (this lowers available capacity)
- Shopping excessively for credit
- Opening numerous accounts in a short period of time
- Having more revolving loans in relation to installment loans
- Borrowing from finance companies


How can you improve your score?
- Pay down on credit cards
- Do not close out credit cards because capacity will decrease
- Continue to make payments on time (older late payments will become less significant with time)
- Slow down on opening new accounts
- Acquire a solid credit history with years of experience
- Move revolving debt to installment debt


Source: www.myFICO.com

SpotPay!

Introducing SpotPay! Secure Payments. On the Spot!

Do you run a small business and find yourself turning away customers because you don’t accept debit/credit cards? Does your job require you to constantly travel and can’t be tied down with a traditional payment card processing machine? The Lisbon CU has a solution for you! We have partnered with SpotPay, an innovative way to accept payments on-the-go. All you need is an iOS or Android smart phone or tablet. SpotPay uses a small card reader that connects to your device allowing you to swipe a card to accept payment. The device is secure and does not store sensitive data on your device.

Customers can sign the touch pad and get a receipt emailed to them for their records. The funds are then deposited into your Lisbon CU checking account. It’s easy, it’s safe, and it’s a fast way to get paid. It’s a great solution for landscapers, contractors, farmers market vendors, craft show vendors, etc. There is a monthly fee of $8.95 and a transaction fee of 1.99% per transaction (some transactions may be more, see disclosure for full details). The service also comes with 24/7 phone & email support.

Click here to learn more, and to sign up for this convenient service!

Back to School Safety Tips! For Drivers, Children and Parents

Now that summer is coming to an end it's time to prepare ourselves and our children for back to school. Meaning that, drivers need to slow down and pay attention. It is important to obey all signs, safety patrol and officers when passing a school zone. These safety precautions are intended to keep the driver and the children safe from accidents. Parents, it is up to you to remind your children about traffic safety and exiting/entering the school bus safely. By following these simple tips, we can all ensure that children arrive to and from school safe and sound.

Drivers:

• When backing out of a driveway or leaving a garage, watch out for children walking or bicycling to school.
• When driving in neighborhoods with school zones, watch out for young people who may be thinking about getting to school, but may not be thinking of getting there safely.
• Slow down. Watch for children walking in the street, especially if there are no sidewalks in neighborhood.
• Slow down. Watch for children playing and congregating near bus stops.
• Be alert. Children arriving late for the bus may dart into the street with out looking for traffic.
• Learn and obey the school bus laws in your state. Learn the "flashing signal light system" that school bus drivers use to alert motorists of pending actions:

• Yellow flashing lights indicate that the bus is preparing to stop to load or unload children. Motorists should slow down and prepare to stop their vehicles.
  
• Red flashing lights and extended stop arms indicate that the bus has stopped, and that children are getting on or off. Motorists must stop their cars and wait until the red lights stop flashing, the extended stop sign is withdrawn, and the bus begins moving before they can start driving again

Children: 

• Get to the bus stop at least five minutes before the bus is scheduled to arrive.
• When the bus approaches, stand at least three giant steps (6 feet) away from the curb, and line up away from the street.
• Wait until the bus stops, the door opens, and the driver says that it's okay before stepping onto the bus.
• If you have to cross the street in front of the bus, walk on the sidewalk or along the side of the road to a point at least five giant steps (10 feet) ahead of the bus before you cross. Be sure that the bus driver can see you, and you can see the bus driver.
• Use the handrails to avoids falls. When exiting the bus, be careful that clothing with drawstrings, and book bags with straps don't get caught in the handrails or doors.
• Never walk behind the bus.
• Walk at least three giant steps away from the side of the bus.
• If you drop something near the bus, tell the bus driver. Never try to pick it up because the driver may not be able to see you.

 

Parents:

• Teach children to follow these common sense practices to make school bus transportation safer. 

source: http://www.nhtsa.gov/people/injury/buses/kidsschoolbus_en.html

Are YOU the Next Young & Free Maine Spokester?

The search for the NEXT Young & Free Maine Spokester has begun! Do you have what it takes to be a Spokesperson? If you’re 18 to 25 years old, media savvy, creative, REALLY like blogging and making videos… then this could be the perfect opportunity for you.

Imagine a job where the most important thing you have to do, is be YOU! Of course, there are many other perks of being a Y&F Spokester!

• A 10 month term with a $25,000 contract salary
• An Apple® MacBook Pro notebook computer loaded up with Adobe® Creative Suite software
• An HD video camera with mic and accessories
• An iPhone with a paid contract
• The use of a car to get around to events

With these tools you’ll be the voice of young individuals all around Maine; Encouraging and reinforcing the positive Credit Union message.  

 Click here for job descriptions, entry requirements, official rules and how to enter! 

 

One OUTSTANDING Campaign!

During 2012 the Lisbon Credit Union participated in the Maine Credit Unions’ Campaign for Ending Hunger. We are delighted to announce that the 67 participating credit unions raised an astonishing $471,744.42 to help end hunger in Maine. We are honored to have been part of this record-setting accomplishment. It's hard to believe that even during a time of financial crisis, we are able to join forces and produce impressive results. Compassion, and the simple philosophy of people helping people really pulled through in this time of need.

Statistics show that Maine is the number one state in New England that is currently food insecure. This is an issue that falls heavily on our hearts. However, thanks to the dedication of Maine's credit unions, our loyal staff and the generous people of Maine we are one big step closer to diminishing this unfortunate problem.

The Maine Ending Hunger Campaign has been active since 1990. "Credit Unions have now raised $4.8 Million for the campaign." The most rewarding aspect of this achievement is the guarantee that 100% of the funds raised go directly to food pantries and hunger organizations across Maine.

We look forward to the successful future this campaign has in store for Maine. We would like to end this note with a big THANK YOU to everyone who so kindly donated to this cause. Your help is greatly appreciated.