IT’S NOT A LIFE SENTENCE!
If you have a poor or damaged credit score, it can hurt your chances of getting the best rates on loans, being able to secure a home mortgage or even renting a nice apartment. Luckily, you’re a member of Ironworkers USA Credit Union! We understand that life happens and poor money decisions are sometimes made, but we’re here to help you make the most out of your financial life.
There are several ways for you to repair your credit and boost your credit score. It does take time to see those numbers rise, but with patience and consistency, your credit score WILL improve, and you’ll be on the road to gaining the financial life you deserve.
Here are some steps to get you started:
1. CHECK YOUR CREDIT REPORT AND CREDIT SCORE
Your report has information about how you’ve used credit during the last 10 years. You can get a free copy of your credit report from AnnualCreditReport.com. A credit report does not show your credit score, but as a Credit Union member, you are eligible to check your FICO Credit Score for free through your online banking account or mobile app. Visit ironworkerscu.org/fico-faq/ to get started.
2. FIX OR DISPUTE ERRORS YOU SEE ON YOUR REPORT
Unfortunately, credit bureaus sometimes make mistakes. If you see something wrong, contact the credit bureau (Experian, Equifax, TransUnion) in writing and provide supporting documentation.
3. PAY YOUR BILLS ON TIME
Payment history makes up to 35% of your credit score. Setting up bills on autopay is a great way to make sure you are not late with a payment.
4. PAY DOWN DEBTS
If you have outstanding credit card bills, it’s often a great idea to pay off the lowest balances first and then focus on larger balances. Ironworkers USA Credit Union has loans that can be used for debt consolidation as well. By combining all your credit card debt – or other debt – into one loan, you’ll have just one payment a month and save by eliminating the high-interest rates of credit cards.
5. KEEP OLD CREDIT CARDS OPEN
If you leave your credit cards open, you can establish a long credit history which makes up 15% of your credit score. Credit card companies, however, often require you to make a purchase after a certain time period to keep the card active. As long as you pay the card off in the same month, no interest will accrue, and you’re good to go.
6. DON’T OPEN A CREDIT ACCOUNT UNLESS YOU REALLY NEED IT
Every time you apply for a loan, credit card or some other form of credit, the creditor will run a “hard credit check.” This type of credit check can drop your credit score by one to five points. Ouch! So avoid applying for credit unless you really need it. Good to note though, checking your own credit score through the Credit Union is considered a “soft credit check” and will not affect your score.
If you need help fixing your bad credit or improving your credit score, we’re ready to help! Give us a call at 1-877-769-4766 and a member representative will be happy to talk with you and come up with a plan just for you!
