How to boost and get more from your score
A solid credit report and score are essential in today’s world. Good credit can help you finance a new car, qualify for a cash-back credit card, get a good rate on a home loan, and even save you money on car insurance. Here are some of the factors that can affect your score and how to boost yours over time.
Always Make Prompt Payments
When you have a loan, it is essential that you never miss a monthly payment. That’s because one-third of your overall credit score is based on when you make those payments. If you’re late, it can adversely affect your overall score. To avoid being late, set up automatic payments with your lender or in online banking.
Have Several Credit Accounts
Yes, having a car loan or a credit card can help you build your credit over time. But, having several different types of credit can build your score. For example, a mix of several credit cards, a store credit account, student loan, and auto loan can help boost your credit.
Don’t Have too Much Credit
There is a fine line between having enough and too much credit. To maintain a good balance and overall credit score, keep your credit card utilization ratio at or below 30%. That ratio is calculated by dividing the total limit on all of your credit cards by your overall balance. If that number gets too high, pay some of it off.
Check Your Report for Free
To get a free copy of your report, visit annualcreditreport.com. There, you can get a copy from each of the three reporting agencies (Equifax, Experian, TransUnion). To continually check your credit, download a copy from each of the agencies as often as allowed for free.
How can this help build your credit? It doesn’t. But what it can do is help you spot errors and fraud on your account, which can affect your score. As you read your report, look for duplicate accounts, inaccurate balances, and information, as well as inactive accounts, or missed payments. If you find an error or issue, report it to the agency.
Build Credit with a Credit Card
A Central Willamette credit card can help you build your overall credit and score. Plus, you can earn points for every dollar you spend with a Signature Rewards Credit Card. Then, you can use those points for cash to help make the monthly payment. That’s what we call a win-win.
Or choose one of our other credit cards that help build credit and buy what you need. Options include the Platinum Visa Credit Card for purchasing power and a Platinum Secured Visa Credit Card to build or repair credit.
Let’s Talk about Your Credit
Central Willamette Credit Union is committed to helping you build your credit and boost your score. Come by any branch or call (541) 928-4536 and ask about your options.