Now is a great time to start your journey toward financial health. At The Partnership FCU, we’re here to help you get there.
Never underestimate the value of a good credit score. In general, FICO credit scores, which range from 300-850, are what most lenders and organizations use to determine creditworthiness. The higher the score, the better. While a bad credit score won’t disappear overnight, here are five ways to help gradually improve your score.
Review your credit history: Obtain a copy of your credit report and review it for inaccuracies. Every negative mark impacts the overall score. Filing a dispute to correct inaccuracies is time well spent.
Keep paid off accounts open: With 15% of the credit score determined by the length of your credit history, it is important to keep older accounts open. Even after paying a balance in full, keeping that account open and active will improve your score.
Pay off your balance: Lots of small balances on different cards can hurt your score. A better strategy, if possible, would be to stick to using and carrying balances on just one or two cards instead.
Pay bills on time: This is one of the most important and often overlooked opportunities that can make a big impact on your score. Paying just 30 days late will lower your credit score. Go 60 or 90 days past due and your score will plummet.
Pay down your balance: If your cards are all maxed out, even if always paid on time, it will significantly lower your credit score. To lenders, it looks like there is no spare money to pay on another loan, and it’s unlikely any additional credit will be granted.
When you’re ready to start your financial fitness journey, The Partnership FCU will be here to help.