Your credit score is an important factor when it comes to qualifying for lower interest rates. That’s why it’s important to know exactly what it is before you apply for a loan. At UW Credit Union, you can monitor your score for free, and we offer tips for improving your credit health. You also may want to consider requesting a free credit report from one of the three main credit bureaus, which you can do once every 12 months. That way, you can review your credit report, just in case there are any mistakes that may need correcting. Want to take a deep dive into improving your credit situation?
What is a credit score?
A credit score is a measure of your credit health. It is derived from information in your credit report. According to the FICO website, “FICO’s credit scoring algorithm, developed by Fair Isaac Corporation (FICO), is designed to provide a single, consistent gauge of how an individual’s credit history affects their ability to repay a loan.” How to get a better credit score Fortunately, improving your credit health is easier than you may think. Here are seven ways you can improve your credit health. Pay your bills on time and consistently Your payment history is a significant factor in calculating your credit score. Paying all your bills on time helps you build a good credit history and shows lenders you are a responsible borrower.
Why your score matters
According to the Fair Isaac Corporation, your credit score includes data from three major credit bureaus: Equifax, Experian, and TransUnion. Here are some reasons why your score matters: When you apply for a loan, you are required to verify your identity. Because of this, lenders want to know that you are responsible. This is how lenders determine your creditworthiness and determine if you are likely to repay the loan in a timely manner. A credit score gives you a single number, which is used to compare your creditworthiness with that of other people. With a score between 700 and 729, you are considered average. With a score of 740 or above, you are considered to be above average.
Free monitoring of your credit
UW Credit Union has a comprehensive, in-depth credit monitoring program that provides you with an instant answer to any questions or concerns you may have about your credit. Simply enter your zip code on our website to see what’s going on with your credit. You can use the car rental information you find on your credit report to see what kind of rates you’re paying for car rentals. Don’t wait, because it’s a long time until next July! $10 off a credit repair service Allowing you to get the information you need is just part of the benefit of having UW Credit Union’s credit monitoring service. You can also take advantage of $10 off a credit repair service. You might not need to file for bankruptcy to repair your credit, and you might not even need to make any major changes to your credit.
Improve your credit history
The first step is to start paying down outstanding debts. In the car industry, this is commonly referred to as “failing to make payments.” We recommend that all borrowers pay their loans back on time and in full each month. At the same time, make sure to pay extra on interest as a “bailout” to your bank, and never extend the terms of a loan – always pay on time and in full. Get approved for a car loan with the UW Credit Union If you are looking for a new or used car loan with UW Credit Union, we are dedicated to helping you get the car loan that’s right for you. Our loan consultants will walk you through the details of any type of loan and give you the information you need to make an informed decision.
Improve your credit score
By taking these simple steps, you can improve your credit score by as much as 30 points. A quick way to improve your credit score There are a number of ways to improve your credit score, but the easiest is by clearing up any mistakes on your credit report. Many of the errors you might encounter are no big deal — but if you’re not aware that they’re there, they can have a negative impact on your score. Filing for bankruptcy Obviously, it would be best if you never had to file for bankruptcy, but it’s always good to know that it’s possible. Even if you don’t have a good record of paying your debts, your bankruptcy filing can still have a negative impact on your score.
With careful planning and proactive behavior, you can have a positive impact on your financial health. Your credit is very important, and credit unions are here to help. Visit your local credit union and check out all our services and benefits.