January 19, 20213 Strategies for Improving Your Credit Score

Your credit score is a number you need to know. Lenders, insurance companies, and even some employers use this score to decide how reliable you are. It pays to do your best to make sure it’s as high as can be. 

 There are many ways to find out your credit scoreAs a PEFCU member, you can access your score with the FICO feature in our mobile banking app. Your FICO score, the most widely used credit scoring tool, specifically details what affects your scoreIf you need more details, you can order a free copy of your credit report through www.AnnualCreditReport.comFrom there, you can check to see if the information on your report is correct and file a complaint if necessary. 

 If you’re ready to boost your score, take these three steps to make it happen. 

Pay Your Bills on Time Every Time. 

Your ability to pay your bills on time has by far the most impact on your score. To help ensure your payments are made on time, try setting up automatic payments whenever possible for any credit card or loan you have. Also, iyou’re already late or know you will be late, reach out to your lender right away. At PEFCU, we may be able to work out a repayment plan with you so that you get back on track. 


 Work to Pay Down Your Debt. 

Reducing debt is always a good thing–and it saves you money. Your goal is to reach a debt-to-credit limit ratio that is under 30%. This means you’re using less than 30% of the available credit. Always pay more than the minimum on your balances the time you hold your debt and the amount of interest accrued. Pay your debt with the highest interest rate first; then, move to the next.  

Use Credit! 

You can’t build your credit history without credit. Just do it wisely. Start establishing your credit history by opening a low-interest credit card with PEFCU. Make small purchases (such as gas for your car) with your PEFCU credit card, then pay it off in full each month. You can also raise your score by opening other types of loans, such as mortgages and auto loans.  

Overall, you can improve your credit score by using smart money management strategies. The key is to build your credit consistently using these strategies. 


We’re Here to Help! 

If you have questions on budgeting or about responsibly using credit, stop by or give us a call at 1-800-226-6673. 


Each individual’s financial situation is unique, and readers are encouraged to contact PEFCU when seeking financial advice on the products and services discussed. This article is for educational purposes only; It does not constitute legal advice. If such advice or a legal opinion is required, please consult with competent local counsel. 



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