Build, Protect, Succeed:
Credit Score Tips That Really Work
At LOC Credit Union, we know that your credit score plays a large role in helping you achieve your financial goals—from securing a lower interest rate on a car loan to qualifying for a mortgage. The good news is, improving your score isn’t as difficult as it may seem. By establishing a few smart habits and strategies, you can build a stronger credit profile and set yourself up for long-term financial success.
Stay on Top of Payments
- Even one late payment can have a significant impact. Setting up automatic payments or alerts inside the LOC Digital Banking app can help. If you do fall behind, it’s important to bring those accounts current as quickly as possible to minimize the potential damage to your credit score.
Keep Credit Balances Low
- Aim for 30% or less of your credit limit: Credit utilization is a key factor in how your score is calculated. In general, lower utilization can help improve your credit score, which can in turn make it easier to secure new lines of credit and lower rates.
Build a Long Credit History
- Don’t close old accounts unless necessary: Length of credit history matters, so having older accounts on your report can help. Keeping lines of credit open can help you maintain a lower utilization rate, which can in turn help with increasing your credit score.
- Use your accounts regularly but wisely: Small, consistent use shows responsible activity and reliability.
Diversify Your Credit Mix
- Have a variety of accounts: A mix of credit cards, installment loans, and other accounts can strengthen your profile.
Limit New Credit Applications
- Apply for new credit sparingly: Each hard inquiry can cause a dip in your score and the most often you're having inquiries, the more your score will be affected.
- Shop smart: When shopping for auto or mortgage loans, try not to do too much shopping at one time.
Monitor and Protect Your Credit
- Check your credit report regularly. The SavvyMoney tool inside Digital Banking grants you regular access to your credit score and history at zero cost to you. Additionally, our Premier Checking Account includes ID Protect, which is another great tool to regularly review your credit report.
- Dispute errors right away: Mistakes on your report can drag your score down. This is why it’s so important to keep a close eye on your credit report. Tools like SavvyMoney and ID Protect can help keep you notified and alert you of any activity on your credit report.
At the end of the day, your credit score is more than just a number. It’s a tool that can open doors to a number of different financial and life opportunities. We’re here to help you improve and strengthen your financial health. By following these tips, using our free Financial Wellnesss Tools and additional financial education articles, you can be well on your way to stronger credit and brighter financial possibilities.
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