Poor Credit?
Is your credit in need of repair? Here are some tips to help you build or rebuild credit.Pay your bills on time – each and every time.
This is one of the most important things you can do to help build and rebuild your credit. Mark payment dates on your calendar so you make sure you always send your payments in on time. Better yet, sign up for online bill pay or automatic payments so you’ll always know your payments will be received on time. Ask your credit union for details.Pay off your collection accounts
If you have outstanding collection accounts, try to arrange to pay them off as soon as you can. Contact the creditor to request payment arrangements for balances that you can’t afford to pay in full today. Make sure you get any agreements in writing for your protection.Try not to “max-out” your accounts
Just because you have a $10,000 credit card limit doesn’t mean you should keep it maxed out at the highest limit! In addition to hurting your credit, it also incurs you with high interest fees.Avoid excess credit applications
Every time you apply for additional credit cards, loans or other products that require credit, your credit scores drops. It may be tempting to apply for that cool new Broncos credit card and get a free t-shirt, but before you do, take a look at what you really need and make your decision based on that.Keep your old accounts
Credit history is improved when you can show you have accounts that have been opened for many years. That shows creditors that you have stability and helps them with their decision.Avoid excessive balance transfers
Sure, transferring balances to a credit card with a lower interest rate is a good way to consolidate debt – but make sure you read the fine print. Is the new card going to spike up their interest rate after the initial balance transfer? Also, make sure that by transferring the balances you aren’t maxing out your limit, which could have a detrimental effect on your credit.Reduce your debt load
Your credit union has financial advisors that can help you with your overall financial health. They can help you reduce your debt and set you up with the best spending/savings plan for your lifestyle. Contact your credit union for more information.