Credit 101, Part 2

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credit score diceWhat’s in a Credit Score

Now that you know how to obtain your credit report, from our Credit 101 Part 1 Article it’s important to understand how the credit reporting agencies determine your credit score.  According to, your score is calculated from several different pieces of credit data in your report.  This data is grouped into five categories, each of which is weighed differently.  The five categories break down as follows:



Based on this information, you can see how important it is to pay your loans in a timely manner and limit the amount you borrow as much as possible.  No two credit scores are created equally.  Everyone has a different credit score based on their individual borrowing habits, which makes it difficult for lenders to set a specific score they are willing to lend to.  Peach State takes multiple factors into account than just your score.  Some of the factors that Peach State may consider include, but are not limited to:

  • Debt to Income (DTI) Ratio – Your ability to repay a loan.  This number is derived from the amount of your current gross income that is allocated to current debt.  In many cases this number cannot exceed 45%.
  • Length of Employment – In some cases, your length of employment may be considered since it shows stability.
  • Length of Membership – If you are a long-time member of Peach State, we may take this into account.
  • Payment History – You may have experienced difficulties paying some debt in the past, but if you have had several loans with the credit union and paid them as agreed, we may take that into account.

These are just a few of the factors, other than your credit score, that could help get you approved for a loan.  With that said, nothing is more important than your score.  Taking care of your credit score could be one of the most important things you do in your life.  Without it, you may find your options are limited when it comes to purchasing large items like a home or a vehicle.

If you would like more information on how Peach State can help you with a loan or have any other questions feel free to email us at or complete our contact us form.


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