So you have been told that your credit score is not very high, now what?  I am asked a lot “how can I improve my credit score"?

There are several things you can do that can help; the first one is to get a copy of your credit report (you don’t need to pay for it and don’t really want to pay for “your score”) from each of the three major credit bureaus.  You are entitled to a free copy of your credit report once every 12 months.  They can be obtained at www.annualcreditreport.com but pay attention; all three companies try to sell you something (usually your score) before they let you into their report.  One of the problems with buying your credit score from the bureau is that each one has made their own model to sell but what they report to creditors is different because regulations require that the scoring model be controlled by an independent third party.  When you hear terms like FICO, Beacon or Fair Isaac the terms refer to companies and the credit score model they sell to the credit bureaus.  These are the scores creditors use but not what you get when you shell out your 12 or 15 dollars to the bureaus.

Once you have your reports go through them carefully, making sure that the information in them is accurate.  If there is an error contact the individual bureau and ask them to correct it.  Now that you have reviewed your report and determined that everything is correct what next?  Here are some other things you can do to boost your score:   

• Pay all bills on time. Responsible bill payment makes up about 35% of your credit score.
• Ease up on "charge-its." Big balances will hurt your score. Keep balances less than 35% of your available limit. Track charges with a check register, or check account balances frequently online. The total amount you owe makes up about 30% of your credit score.
• Keep--and use--old cards. The older and more established your credit history, the better. If you lose or don't use old cards, some issuers stop updating those accounts with credit bureaus or don't give as much weight to them. Charging even a small amount every few months will help boost your score as long as you pay on time. Length of credit history makes up about 15% of your score. Another reason to use old accounts now and then is that some card issuers are charging inactivity fees.
• Follow up on goofs. If you slipped up once and paid late, but otherwise have been a good customer, write and ask that the ding be deleted from your file. It's worth the time and effort to solicit a "goodwill adjustment."
• Mix up your credit. By having, say, a mortgage, a credit card or two, a personal loan, and a charge card, this "mix" sends a signal to lenders that you can handle credit responsibly. Having a mix of credit makes up about 10% of your score.
• Watch those new-credit offers. If you're about to apply for a mortgage or other form of credit, don't open a flurry of new accounts. Too many inquiries--except those batched together while you're shopping for, say, an auto loan within a few weeks' time--can hurt your score. Keeping new-credit requests to a minimum accounts for about 10% of your score.

Experts note that trying to boost an already-high credit score won't have much of an impact, particularly if your score is 760 or higher. Once you hit that mark, you're already getting the best rates available.

If you wish to meet with someone from the credit union to discuss your report or credit score please give us a call and we’ll be glad to help anyway we can.  Your credit score is one of your most important assets because

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