News & Promotions What's New Current Promotions Newsletters Credit Score Financial Tips - Part 2 Never miss a credit card payment. If you’re experiencing financial troubles, call your credit card company BEFORE the payment date. They may be able to offer solutions and help avoid damage to your credit score. Avoid missing a credit card payment by enrolling in auto payments. Most cards offer payment options that will automatically withdraw your minimum balance due each month – helping you avoid fees and damage to your credit. Did you know? A secured credit card is an excellent tool to rebuild your credit or help you begin building your credit. It functions the same as a normal credit card, but it is secured by funds held at the credit union. Heading off to college? A secured credit card is an excellent way to prevent overspending and help you learn to manage credit card debt. It’s also a great tool to help begin building your credit history and score. Credit card churning is when you sign up for new credit cards regularly to take advantage of bonus reward points. While this may sound good, it can be detrimental to your credit score & cause your balances to balloon. Keep your oldest credit card active. This will help improve the average age of your credit and boost your credit score. Most credit card providers will close your account if your card is inactive for 12 months. If your credit score increased since you originally purchased your car, refinancing may be a great solution for you. Switch your auto loan to the credit union from your current lender and lock in better rates. Online Bill Pay is a great tool to help protect your credit score. By setting up your recurring bills to pay automatically, you never have to worry about missing or being late on a payment again. When monitoring your credit, don’t only look at your score. Review your full credit report to find any errors or fraud accounts. You can obtain a free copy of your credit report each year at AnnualCreditReport.com. If you tend to forget about bills or are often late on payments, use a digital calendar to help. Set up reminders on your phone or computer to notify you when payments are due. This will give your credit score a boost too! Kid Heading Off to College? Help them build their credit score responsibly with a Secured Credit Card. You can also request a set credit limit to prevent excess spending. Be proactive in educating kids about money. Avoid paying late fees and potentially hurting your credit score by setting your bills up on autopay. Each month when your bill is due, the company will automatically charge your account or credit card. Checking your credit score regularly is a great habit. But make sure to also check your full credit report. Even if you have a good score, periodically review your report for errors or fraud accounts. Use your first credit card primarily to build your credit score. Set up a small payment, such as a Netflix subscription, to auto-bill to your card monthly. Then, enroll in auto payments to ensure the balance is always paid on time. Did You Know? Late or missed payments not only make up the largest portion of your credit score, but they can stay on your credit report for up to 7 years. Set reminders on your calendar to ensure you never miss a payment. Trying to build your credit score without taking on debt? Ask your parents to add you as an authorized user on their credit cards. Their good payment history can help jumpstart your credit history. As interest rates continue to climb, now is the best time to work on improving your credit score. With a higher score, you’ll be able to refinance your existing loans at lower rates and save money each month. Once you pay off your credit card, keep the account active (unless the temptation to use the card is too great). Keeping credit cards active with a $0 balance will improve your Credit Utilization Ratio and credit score. It’s commonly believed that your income affects your credit score. Nowhere on your credit report is your income listed. That’s why lenders always ask for copies of your paystubs–they cannot get it from your credit report. Parents: Do you have a child that recently turned 18? Consider opening a secured credit card for them. They’ll learn how to manage credit cards responsibly with little risk and start building up their credit score. Before the year ends, it’s wise to double-check your credit report for any errors or fraud. You can obtain a free copy of your report from each credit bureau (Experian, Equifax, TransUnion) at AnnualCreditReport.com. With loan rates poised to rise in the coming year, now is the time to improve your credit score. If you plan to buy a car or home in the near future, boosting your score will reduce how much interest you pay. Need to repair a damaged credit score? A credit rebuilder loan is a fantastic option. It’s a short-term loan that uses money in your savings as collateral. With every on-time payment, your score will begin to improve. Planning to purchase a new car or home soon? Use a Credit Rebuilder Loan to improve your credit score in the meantime. These loans are inexpensive and can boost your score quickly – lowering the cost of your future loan. Are you a victim of identity theft? Place a Fraud Alert on your credit reports. Lenders will be forced to take extra precautions when issuing credit or loans in your name, including different steps to verify your identity. If your identity is stolen, freeze your credit reports. A Security Freeze prevents lenders and creditors from accessing your credit reports. Without access, they cannot issue new loans or credit in your name. Improving your credit score today will put more money back in your pocket tomorrow. With a higher score, you’ll pay less interest when it comes time to buy a new car or finance your first home. Your credit utilization ratio is a key figure that lenders review when approving loans. Calculate this ratio by dividing your total revolving credit by your total credit limit. Make it a goal to keep this figure below 30%. A credit limit is the maximum amount you’re able to charge to your credit card. Creditors will often raise your credit limit when you ask if your credit score has improved or if your annual income has increased. A common money myth is that you must carry a balance on your credit card to improve your credit score. Always try to repay your entire balance monthly and on time. This will boost your score and credit utilization ratio. Planning to buy a new car within the next 6 months? Start improving your credit score now. Focus on making on-time payments and reducing credit card debt. Every point helps when qualifying for a lower interest rate. Payment history plays the largest role in calculating your credit score. Use online bill pay to schedule all your monthly bills and loan payments – ensuring you never miss a due date and your score keeps rising. 10% of your credit score is determined by the types of debt you carry. Lenders like to see that you can responsibly manage both unsecured debt (credit cards, personal loans) and secured debt (auto, home loans). Keep your credit score rising by never missing a payment. Schedule your bills and loan payments on your calendar and set reminders. Enrolling in autopay is an excellent option to ensure you always pay on time. As you work to improve your credit score, don’t become discouraged if your score suddenly decreases. Credit bureaus update your score at least once per month, and fluctuations are common. Minor drops are often temporary. Most lenders price loans using credit score tiers. That means even minor improvements in your score can lower your loan costs. To boost your credit score quickly, never miss payments & work to reduce credit card balances. Most new homeowners are surprised to see their credit scores drop suddenly after buying a house. This decline is common and temporary. Your score should rebound in a few months as you make on-time mortgage payments. Lenders review your Debt-to-Income ratio when approving loans. Aim to keep this number below 40%. Formula: Monthly Debt Payments (e.g., mortgage/rent, car loan, etc.) ÷ Gross Monthly Income x 100. Before applying for a loan, work to reduce outstanding credit card debt. This strategy will decrease your Credit Utilization Ratio & Debt-to-Income Ratio. Lenders review both figures when approving loans. Your Credit Utilization Ratio (CUR) shows how much credit you’re utilizing. Lenders use this figure when approving loans. Aim to keep your CUR below 30%. Formula: Total Credit Card Balances ÷ Total Credit Limits x 100. A low Debt-to-Income Ratio (DTI) means you have room in your budget for new debt, e.g., buying a car. A high DTI signals challenges with new debt. Prioritize lowering credit card balances before applying for a new loan. With rising prices, many are worried about late loan payments. If you fear missing a payment, contact your lender before the due date. They’ll have more options available, including ways that won’t impact your credit score. Is improving your credit score one of your New Year’s financial resolutions? Your credit will be on the mend before you know it by making payments on time, paying down high-interest debt, and disputing report errors. Late payments have the greatest impact on your credit score. Use automatic payments or reminders to avoid missing due dates or incurring late fees. Consistent on-time payments demonstrate fiscal responsibility to lenders. Having multiple credit cards won’t necessarily hurt your credit score, but it can increase the temptation to overspend. Before applying for a new credit card, ask yourself why you need it & if it’s in your best interest. A few late payments might seem like no big deal, but they can negatively impact your credit score and saddle you with extra fees. Payment history makes up 35% of your score & can remain on your credit report for 7 years. Before applying for a credit card balance transfer, check your credit score. You want to ensure you’re in the best financial shape so you can lock in a lower interest rate and immediately begin saving money. Protect your credit score by opting for automatic payments. With multiple cards, remembering due dates can be tricky. Automate payments for at least the minimum amount due to avoid late fees and maintain your credit health. Creditworthiness and credit score sound the same, but they’re not. Creditworthiness encompasses many aspects that allow lenders to fully grasp your financial situation, such as job stability, income, and current debt levels. Don’t rely solely on a high credit score. Lenders assess your overall financial health for loan approvals. Manage debt wisely, maintain stable employment, and monitor your credit report regularly for errors or fraud. Strengthen your creditworthiness by monitoring your credit, paying bills promptly, reducing high-interest debt, and limiting new credit applications. Responsible borrowing leads to better loan terms and greater savings. Applying for a loan soon? In addition to responsible money management, lenders want to see stability in your financial situation. A consistent employment history highlights your ability to repay the loan now and in the future. Before applying for a loan, pay down existing credit card debt. This tactic will improve your unsecured debt and credit utilization ratios – 2 figures lenders review in addition to your credit score when approving loans. Spend a few months before buying a new car working on your credit score. Even modest improvements can lower your interest rate. Start by reducing as much credit card debt as possible to boost your score quickly. Protect your credit by reporting fraud immediately, updating all automatic payments with your new card details, and checking your credit report for unauthorized accounts. Early action can prevent lasting damage. Unauthorized transactions on your credit card? Report them immediately to your financial institution. They can freeze your account and issue a new card – helping to prevent further fraud and protect your credit score.