How to Build a Strong Credit History: Robins Financial Credit Union

Any time you want to borrow money, your credit history becomes very important. Your credit score is a number ranging from 300 to 850 that tells potential lenders how likely you are to repay a loan. A higher number makes you more eligible for a loan, and can also mean more favorable loan terms. If a lender thinks you’re a greater risk, they will likely charge a higher interest rate. It’s best to have as high a credit score as possible. So, how can you raise your score? If you are looking to establish a strong credit history, here are a few useful tips: Make sure all your utilities are in your name – and always pay on time! Apply for a small loan or line of credit from Robins Financial – and then charge and pay back on time! You can also look to department stores or gas stations for a credit card, and promptly pay back any charges If you meet resistance from lenders with any of these, consider the following steps: Find a co-signer for your accounts Offer a larger down payment if you are financing a purchase Make sure your creditors are reporting your activity to the credit bureaus If your credit score is low, here are some ways to rebuild your credit: Get a credit report, review it closely, and report any mistakes If you struggle with paying bills on time, try setting up automated bill pay and direct deposit If you have a lot of debt, pay it down more rapidly Apply for a small line of credit or a secured credit card Once you’ve built your credit back up, use it wisely and keep it there! Remember these guiding principles: Charge small amounts and pay on time Pay in full whenever possible, or at least more than the minimum. Avoid maxing out your credit cards or incurring late fees Avoid using cash advances Avoid opening a flurry of new accounts, as this can be a red flag for lenders Whether you are interested in building – or rebuilding – your credit, Robins Financial can be your partner with advice and tools to help you on your way. For more information, call, click or visit any of our branch locations.

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