Having good credit is very important, a good score can help you get low-interest rates when you are applying for a loan or financing purchases. If you are devising a plan to build your credit here are a number of ways that may help to boost that score.
Get a Secured Credit Card
Getting a secured credit card is a great way to build credit if you are having difficulty getting approved for a traditional credit card. With a secured credit card your collateral is a deposit that can be as low as $200. Keeping the balance low and being sure not to utilize over 70 percent of your credit availability also helps boost your credit score. Cards like our Visa Share-Secure allow you to use your savings and certificate deposits at Camino as a pledge for a credit limit. Remember to ask if the financial institution you’re applying for a secured credit card reports the card activity to the credit reporting bureaus, some don’t.
Settle/ Pay any Outstanding Debts
Settling any outstanding debt with creditors is a great way to get a credit boost. Having a high debt to income ratio can hurt your credit, or make it hard to build your credit. Things like student loans are usually deferred but are still considered for some creditors. Remembering to create payment arrangements with creditors is a great place to start.
Become an Authorized User on Credit Cards
If you have a responsible family member who makes on-time payments and keeps a low running balance on credit cards, ask to become an authorized user. This usually doesn’t require an application or credit inquiry. This can be an easy way to build some positive credit history without much work. Keep in mind that the payment history on this account will affect you negatively if it goes unpaid or falls delinquent, this should only be done only with someone you trust.
Set Up Autopay
If you find yourself forgetting to pay bills on or before their due date you may want to consider setting up an autopay feature for your bills. This will help you build credit by making sure you have a positive payment history for all accounts and take the stress off of your plate.
Use a Utility Reporting Program
Traditionally utility bill payment history is not reported to the credit bureaus. In today’s world, there are a number of programs that will report your payment history on utilities like cable, electricity, and even rent. If you pay these on time you can consider enrolling in a program like this to get credit for your hard work!
Building good credit isn’t rocket science, it just takes dedication and organization. Our Member Advisors are here to help you! If you would like to learn more about improving your credit score while staying within your budget, go online to caminofcu.org or visit one of our branches today.