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
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 available credit utilization ratio. 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 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.
Features of Opportunity Checking
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
Use a Credit Builder loan to establish a credit history. Many lenders require a positive credit history to grant 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 a positive credit history in the eyes of lenders while staying affordable.
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 is ineffective 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.
Conclusion
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 can 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 account you need.
