Credit Score Tips & Tricks

Published on January 23rd, 2019

A great credit score does not happen by itself; however, it is easier to improve your score once you commit to improving your finances. As a credit union near Northlake, Leyden Credit Union wants to help you improve your credit score.

Having a good credit score is important because lenders use your credit score and other factors to determine what interest rate you will pay.  The better your credit is, the lower your interest rate will be.  Having a better rate can save you hundreds on a car loan and possibly tens of thousands on a mortgage.

Review Your Credit Report

Every individual is entitled to a free copy of their credit report once a year from each of the national credit bureaus—Experian, Equifax, and Transunion.  This allows you to get a free copy every four months. You can request your reports at www.AnnualCreditReport.com.

Your credit report contains credit history from the past seven years. You should review it to see if there is something hurting your credit score–such as misreported debt, inaccurate delinquencies that are not yours, or any other credit that does not belong to you. If you find issues, you should contact the credit bureaus and the creditor. Before you contact them, make sure to provide them with copies of any documents that support what you are saying, when applicable.

Pay More Than The Minimum

Rather than just making the minimum monthly payment, try to pay off your credit cards and other high-interest debt as fast as possible. Create a feasible plan and stick to it to pay off your debt.  Also, keep your credit line as open as possible.  The more credit you have available, the better it helps your score.  This means you should keep your balance as far below the credit limit as possible.  Actually, the quickest way to improve your credit score is to ask your credit card company to increase your credit limit but make sure you do not use the extra available funds.

Automatic Payments

Many banks and credit unions have some sort of automatic payment or reminder system.  Automatic payments will help you with making your payments on time and avoid receiving late fees. With credit cards, if you’re late with just one payment, your rate may increase to a much higher “Penalty APR” and stay there.

Your credit score follows you throughout your life, so it is important that you monitor it and follow some of the tips mentioned above.

 


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