Ways Your Credit Union Can Help You Raise Your Credit Score

It’s that little three digit number that determines a whole slew of things in your life, from if & when you’ll get that mortgage for the three bed, two bath ranch style on Main Street, or a loan for that Mustang GT you’ve been dreaming about since you could drive. It’s your credit score; And it packs a punch. But if your credit score is less than stellar, never fear! Your credit union is here! Most credit unions offer a number of ways to help out their members with polishing up their tarnished score. Here’s a few ways your credit union may be able to help!

1.    Credit Building Loans-These loans are usually given out in small amounts, usually no more than a few thousand, with relatively low interest rates. They’re aimed at helping members rebuild their credit over time, through making your payments on time each month. The loan amount is deposited into a savings account as collateral, and it can't be touched. When the loan is repaid, the member gets the balance in the account, including dividends. Monthly payments are reported to credit bureaus, bumping up your score.

 

2.    Secured Cards-A secured credit card can be a creditworthy tool for people with little or no credit histories. Typically, a savings account is used as collateral against a credit card loan. Your borrowing power builds over time, as you make more deposits into your account. Many credit unions offer secured credit cards, so there are lots of choices. Some even waive annual fees and give you free credit scores.

3.    Online Tools-Many credit unions offer a multitude of credit building tools. Honor Credit Union has free online resources, such Money Desktop, which keeps all of your accounts and bills in check in one convenient, online location for you to keep track of your finances and when payments are due. Honor CU also has Account Alerts. You can set up automatic reminders for when your payments are due, when automatic deposits or withdrawals are processed, and it can even let you know when your balance is getting low! Check with your credit union to see what sort of online tools they have available that can get you on the right financial track and bring your credit score back up!

Getting out of debt is hard, but bringing your credit score back up is even harder. But don’t be discouraged! With dedication and close attention to bills and due dates, you can have your score back in the green in no time!

 Don’t forget to follow Honor on Twitter @honorcu!  Tweet us and let us know what you want to hear us talk about on Mason Jar Monday next week using #askhonorcu!