INDUSTRY INSIGHT
CREDIT SCORE
SPONSORED CONTENT
Improving
Your
Credit Score
in 2018
I
f your credit score could use some improving, you are better off to start right
away as it does take some time for all the pieces to fall into place. When
you have a good credit score, you have access to the best interest rates on
loans and lower rates on insurances. Your credit score is based on years of past
behavior and not just your present situation. Here are some steps you can take
now to start down the right path to better credit.
1. Revolving credit – One major factor in your credit score is how much
revolving credit you have versus how much you’re using. The goal is 30% or
lower. So if you have a credit card with a $1,000 limit, aim to have a balance no
more than $300.
8. Diversify your credit mix - While it probably won’t make or break your
credit scores, lenders typically like to see a mix of revolving credit accounts (i.e.
credit cards) and installment loans, such as mortgages, auto loans and student
loans. The more you diversify the money you borrow, the better.
The best way to improve your credit health is to treat it like a long journey
rather than a short race. Building credit takes time. The best advice? Stay
patient and work on developing good habits that last. With a bit of effort, you
should see your credit health improve over time.
2. Pay your cards in full every month – This one may seem obvious, and it is.
Credit cards are great tools, but when you carry a balance month to month, it
can affect your overall score.
3. Leave old debt on your credit report – When you pay a loan in full, it
shows on your credit report and that’s great for showing a history of good debt
payments. This is also a good reason not to close old accounts when you’ve had
a solid repayment record. These are good for your credit history.
4. Pay your bills on time – One of the biggest contributors to a good credit
score is simply month after month of plain old on time payments. Credit scores
are about what’s in your credit report. The more positive things the better.
5. Check your credit reports yearly – There are sites that offer you a
free report for you to monitor that everything is correct. Go to www.
annualcreditreport.com
6. Age of accounts – If you are new to credit and borrowing, there isn’t a whole
lot of data for your score to be based on. It might take time to build up some
good credit history in order to see the benefits of having good credit habits.
7. Clear up any collection accounts – This may seem like an obvious one, but
if you have gone bad on a debt, the best thing you can do is contact them to
see if you can make payment arrangements to pay them back.
This Industry Insight was written by Wendy Kingsland.
Wendy Kingsland is the CEO of Visionary FCU in Bridgeville. Prior
to joining Visionary in 2011, she was employed by Clearview FCU
from 1991-2011. Kingsland currently serves as Vice President of
South West Communities Chamber of Commerce. She is active in
the Pittsburgh Chapter of Credit Unions, serving as a board member
since 1991 and currently serving as Treasurer. She also serves as a
Director for the Pennsylvania Credit Union Association.
ENJOY A
BETTER LIFE,
WE’LL HELP
YOU GET THERE!
201 Beram Ave. | Bridgeville, PA 15017
Phone: 412-221-6660 | www.visionaryfcu.org
CHARTIERS VALLEY ❘
SPRING 2018
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