Making Credit Work For You

Do you want to make credit work for you?  Credit is the ability to borrow money and repay it later.  When people talk about having good or bad credit they are generally referring to their credit history or scores.  Understanding how credit histories, reports, and scores work will help you take the necessary steps to build a positive record for credit purposes.  The good or excellent credit scores can help you reach your goals by  potentially lowering costs for borrowing money.

How Do You Improve Your Credit Scores?

A credit score is a number that predicts how likely you are to pay back a loan on time.  Companies use various mathematics formulas to create scores from the information in your credit report.  Higher scores reflect a better loan paying history and generally make you eligible for lower interest rates.  Building a credit history is important and takes time.  You can set yourself up for success by choosing the right products and practicing good credit management.  Here are some strategies you may want to consider:

  • Get and review your credit report.  Make sure the information in the report is accurate.  Dispute any errors on your credit report.
  • Research credit building options and choose one that works for you.
  • Establish good habits for managing and paying bills, credit cards, and loans.
  • Check your credit limits so you can keep your balance well below that limit.
  • Set up alerts for you payment dates and put your monthly payment due dates on your calendar.