by Emily Hechler 
A low credit score is a financial hurdle that many face. Missed payments, late payments, and unexpected life situations may cause your credit score to decrease. Unfortunately, it often takes longer to repair your credit score than to damage it. We have the tips and tools you need to help you build your credit score. While it may take some time, you will benefit in the long run by following these actionable steps now.
Rebuilding a Low Credit Score
These first steps that we’ll review can and should be taken with the accounts that you have opened now. At this point, wait to open new accounts until you have confidently managed these tips.
Pay Your Bills on Time
One of the best ways to increase your credit score is by paying your bills on time. Late or missed payments will continue to drag down your score. To help ensure that you will make your payments on time is to set up automatic bill pay with online and mobile banking.
Monitor Your Credit Utilization
Everyone has a different credit limit on their credit cards due to a variety of factors. Those with great credit scores only use about 30% of their available credit each month. Keeping your credit utilization high can decrease your credit score over time. In addition, smaller balances are easier to pay off each month.
Don’t Open Too Many Accounts
Every time you apply for a loan or credit card, a hard credit inquiry is performed, which temporarily lowers your score. This credit check carefully examines your financial history. It also causes your credit score to slightly decrease. By only applying for accounts that you need, you can minimize the necessary credit score reduction.
Pay More than the Minimum
When you use your credit card, you receive a bill to settle the balance. Your bill has a minimum payment in addition to the full balance. By paying more than the minimum payment, you’ll pay off your credit card faster, which helps build your credit. Plus, you’ll save money over time by paying less in interest.
Don’t Carry a Credit Card Balance
If you can, keep your credit card utilization to 30% or less. This way, you can pay off your balance in full each month. This reduces your debt-to-income ratio, which can create new and better opportunities later.
Dispute Inaccurate Information
Scammers can use your information to complete fraudulent activities, which can cause you to lose your money and damage your credit score. We do our best to catch suspicious activity and alert you when this happens. You may even catch a mistake too. When this happens, let us know so we can work together to correct the issue and repair your credit. We’ll work together to contact the three main credit bureaus, Equifax, Experian, and TransUnion, to correct the mistake and ultimately boost your score.
Fin is only one example to show that following these tips can make a difference. They improved their credit utilization, paid more than the minimum on existing debt, became an authorized user on another card, and disputed a mistake in their credit report. While Fin’s situation is a little unique, the strategies that we recommend, and also what they used, increased their credit score by 72 points in only two months.
Features of Opportunity Checking
We understand that many people in our community are victims of life’s unexpected situations. Once you have some history following our tips, you can research opening new products made for your situation.
Our Opportunity Checking account was created with those individuals in mind. While a checking account won’t directly increase your credit score, it will give you access to your money when you need it so you can make your loan payments and improve your credit score. One Alltru member, Tranita, said, “Opportunity Checking helped me get back on the road to financial freedom. Alltru gave me that first step. They took a chance and ever since then it’s been great.”
Here’s how it can help you.
Help Grow Your Credit Score
Many banks turn away individuals with low credit scores. Opportunity Checking accounts were created for those with no credit or a low credit score. Think of it as a second chance Checking account. We know how essential it is to have a checking account, even if you’ve made mistakes in the past. If you are eligible for membership, apply for an account now.
Pay Low Monthly Fees
Not all financial institutions turn away those with low credit scores. When you do accept your application, they’ll likely charge heavy monthly fees. Instead, we only ask for a small monthly fee so you can keep more of your hard-earned money in your account.
Access Essential Banking Products
When you set up your Opportunity Checking account, you get access to online and mobile banking. These tools allow you to control your debit card, deposit checks digitally, and schedule bill payments. Plus, you get access to over 35,000 ATMs through the shared branch network.
Let Us Help You
Our team of financial counselors are here to help members like you. Our counselors are CCUFC certified, which means they are equipped with the knowledge and skills to answer your questions and get you on the path to financial security and success. Alltru members can also learn on the go at their own pace with Zogo Gaming. Earn real rewards in the process while you enjoy learning more financial literacy.
Credit Builder Loan Tips
Our Credit Builder Loan is unlike others available in the Greater St. Louis area. Alltru was recently named a Best Credit Builder Loan provider by WalletHub because of our unique and valuable offer. Here are tips for how you can use a Credit Builder Loan wisely.
Establish a Good Credit History
Many lenders require a positive credit history to lend you loans with low interest rates for products such as cars, credit cards, and houses. If you don’t have a credit history yet, a Credit Builder Loan is a great option. Our low monthly payments and low interest rates help you build credit during your term. You’re one step closer to your next financial goal.
Improve Your Credit Score
A Credit Builder Loan is a great way to improve your credit score. This loan doesn’t commit you to a material item you might not need that depreciates in value. Instead, these small payments each month create healthy credit history in the eyes of lenders while staying affordable. These payments are positively reported in your credit score/
Pay the Minimum Balance on Time
Like any loan, paying the minimum balance on time helps improve your credit score. Plus, every payment makes you closer to paying off the full balance. This loan will do the opposite and can damage your credit if you don’t pay the minimum payments on time.
Evaluate Your Financial Situation
If you already have a few loans or credit cards that you are continuing to pay for, wait to apply for the Credit Builder loan. Instead, focus on paying down your existing debt to increase your credit score. If you have small amounts to pay and will be done in the next six months but still have a low credit score, a Credit Builder Loan is a great option for you.
Build a Small Stash of Savings First
If you think you’re ready to get a Credit Builder loan, check your savings first. If an emergency happens in the near future and you don’t have money set aside for an unexpected situation, you could struggle paying for the cost. Set money aside for an emergency before committing to a Credit Builder loan. You will hurt your credit more if an emergency causes you to not make your loan payments on time.
Tranita also used our Credit Builder Loan to improve her credit score. She said, “The Credit Builder Loan was my money put to a purpose. I was paying myself back and building my credit so it’s a win-win across the board.”
Repairing Your Credit Score is Possible
Taking the time to repair your credit score may be challenging. However, the tips listed above are simple to implement and will help over time. Our Opportunity Checking account is designed for those with low credit scores. We want to give you the second chance and financial tools you need for everyday banking. In addition, the Credit Builder Loan can help you establish a strong credit history at a low cost. Increasing your credit score will come with many perks in the long run. When you’re ready to repair your credit score, let us know and we’ll help you open the accounts you need.
