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Trying to improve your credit score? Cities Credit Union offers a couple lending options to help you do so. Take out a share-secured personal loan or a share-secured VISA Credit Card to get your payment history back on track. Contact a Loan Officer today and get started!
5 Steps to a Higher Credit Score
Improving your credit score can save you hundreds or thousands of dollars on life's big purchases. Improving your credit score isn't hard, but it does take time and knowledge.
- Pay Your Bills On Time Each Month - Late payments, collections and bankruptcies have the greatest negative effect on your credit.
- Check Your Credit Report Regularly - Fix any inaccuracies or negative reporting issues.
- Get Control Over Your Debts - Keep your credit card balances below 35% of your credit limit.
- Give Yourself Some Time - Time is one of the most significant factors to improve your credit score.
- Avoid Too Many Credit Inquires - If you have a lot of credit pulls in a short period of time your credit can be negatively effected. Apply for new credit accounts in moderation.
How Is Your Credit Score Determined
The credit scoring systems has several factors. The impact of each fluctuates based on your own profile.
- Payment History
- Outstanding Debt
- Credit Account History
- Recent Credit Inquires
- Types of Credit/Debts You Have
Trying To Improve Your Finances? Check your credit report every three months.
- Check your credit report every three months.
- Improve your credit score to above 650.
- Reduce your debt balances to below 35% of the available limit.
- Create a monthly spending plan and stick to it.
- Dispute any negative inaccuracies on your credit report.
- Remove all expired debt and negative reports from your credit report.
- Consider refinancing some of your debt to get better interests rates.
- Start putting money into a savings account each month.
- Contribute to your 401k or retirement fund.
- Protect yourself against Identity Theft.
The Do's and Don'ts of Closing Old Accounts
Do...
- Consider closing unused accounts.
- Check your credit report for old accounts you may have forgotten about.
- You can cancel accounts with an active balance. You are still responsible for payments.
- Keep 4 to 6 credit accounts opened at all times.
- Designate only one card for use and pay the balance each month.
Don't...
- Don't close the oldest account on your credit report.
- Don't throw away old credit cards and expect your accounts to be closed.
- Gradually cancel and pay down accounts.
- Avoid over-consolidating balances onto one card.
- Check your credit report after the accounts are closed.
How Long Does Negative Reports Stay On Your Credit?
- Bankruptcy - up to 7 to 10 years
- Charge-Offs - up to 7 years
- Closed Accounts - longer than 7 years
- Collections - longer than 7 years
- Lender Inquires - up to 2 years
- Judgements - more than 7 years
- Late Payments - up to 7 years
- Tax Liens - more than 7 years
*Information provided by www.truecredit.com
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