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Build Killer Credit

Your credit score could be one of the most important numbers tied to your financial name. Whether you’re applying for a loan, buying a house, determining interest rates, or even job-searching, your credit score carries serious weight.

A credit score is a three-digit number ranging from 350 to 800 that helps lenders, landlords, or potential employers assess your credit risk. It’s generated by information in your credit report from each of the three major credit bureaus: Experian, TransUnion, and Equifax.
A score above 700 generally will mean you’ll be granted credit at a good rate.
To build credit the right way, hold at least three open and active lines of credit—a mix of credit cards and fixed payment loans. Use a credit card with some degree of frequency, as the activity creates the information for the credit report and subsequent score.
More ways to boost your credit:
  • Pay bills on time. This can account for up to 35% of your credit score.
  • Keep a low credit utilization ratio. Don’t charge more than you can pay in full when the bill arrives, and don’t use more than 30% of your available credit.
  • Don’t open a flurry of new accounts in a short time period. This can send a red flag to lenders that you are taking on new debt— and temporarily lower your score.
  • Don’t close existing credit. Even if you are not regularly using a credit card, do not close it. Closing cards can shorten your credit history and affect your credit utilization score— thus lowering your total credit score.
  • Pay your fines. Whether it’s a parking ticket or a library fine, pay up. If debts are reported to a credit reporting agency, they can knock your credit score.
The professionals at SRP Federal Credit Union can help you understand your credit score and answer any questions you may have about opening a SRP credit card. Visit our credit card page to learn more, stop by any branch, or call us today!
Copyright 2011 Credit Union National Association Inc. Information subject to change without notice. For use with members of a single credit union. All other rights reserved.


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