How to Improve Credit Score
Ever wondered why your credit score matters so much? It's like a financial report card,
influencing everything from loan approval to interest rates. If you want to improve your score,
you're in the right place!
Understanding Your Credit Score
Your credit score is calculated based on several factors:
Payment History: Consistent on-time payments are crucial.
Credit Utilization: Keep your credit card balances lower than your credit limits.
Credit Age: A longer credit history generally leads to a better score.
Credit Mix: A mix of different types of credit (like credit cards, mortgages, and auto loans) can be beneficial.
Inquiries: Too many recent credit inquiries can negatively impact your score.
How to Improve Your Credit Score
Check Your Credit Report: Review your credit report for errors and inaccuracies. Sign up for Credit Sense; it's free and available through our Home Banking and Mobile App.
Pay Your Bills on Time: This is the most important factor in determining your credit score.
Lower Your Credit Utilization: Aim to keep your credit utilization below 30%.
Don't Close Old Accounts: Older accounts can boost your credit score.
Limit New Credit Applications: Too many recent applications can hurt your score.
Diversify Your Credit Mix: Having a mix of different types of credit can be beneficial.
Be Patient: Improving your credit score takes time.
Educate Yourself: Take advantage of the Financial Literacy tools Unity Catholic FCU has in store for you!
Remember, consistency is key. Following these simple steps and making smart financial
decisions can significantly improve your credit score over time.