Credit Basics

It’s tempting to get credit cards to pay for your “wants” now, without thinking about the repercussions later. Your credit choices now, can affect your ability to make important purchases in the future.

Tips for Credit Success

Credit is your ability to obtain goods or services you want now by promising to pay for them later. Your ability to obtain credit is based on your credit history.

A credit score is a numerical prediction of how risky it might to be lend to you. The FICO score can range from 300-850. Often banks and credit lenders have started to share this score with customers to help them understand their credit. You can also check at www.myfico.com.

Your credit score is determined by a few factors such as repayment history, the amount of debt you have and how long you have had credit. Below are just a few ways to protect and improve your credit score.

  • Pay your bills on time
  • Keep your balances low
  • Only apply for and open new credit accounts as needed.
  • Pay off debt rather than moving it around.

If you are working to improve your credit or are just starting out, then patience is key. It takes time and work to get out of debt and improve your score.” For more information, visit the websites below.

A credit report is a detailed report of your individual credit history prepared by one of three credit bureaus (Equifax, Experian and TransUnion). While there are small differences between each report, we encourage you to check your credit report three times throughout the year.

  • October- November: Equaifax
  • March- April : Experian
  • June- July: TransUnion

You are allowed to check your credit for free from each of these agencies once a year. Use www.AnnualCreditReport.com to check each agency based on the timeline above.

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