Obtain a copy of your credit report from all three credit bureaus so that you have a clear understanding of what it says about you and your credit history. Hanscom FCU members can request a free credit report, and one of our credit professionals will explain how to read the report.
2. Develop a Plan
If there are errors on your credit report, have the credit bureaus investigate and correct them. Set goals and time frames for future major credit endeavors.
If you recently filed bankruptcy or if you don’t have any open credit, start building credit as soon as possible. Try to obtain several new accounts or sources such a secured credit card, department store cards or being put on someone else’s account as an authorized user. The lower your starting credit scores, the more your need to have positive items reporting.
For secured cards remember the following:
If you already have credit open, keep your oldest accounts. Even if there were late payments in the past, pay them on time now. And remember, the older the account, the more it will help your credit.
Always.
Target to have the total amount of outstanding revolving debt at 30% or less of the total available credit limits.
Once new positive sources are created, avoid all unnecessary inquiries. Don’t fill out any additional applications for credit.
For home purchase or refinance, old collections/judgments/unpaid taxes/unpaid child support must be dealt with. Look at the date of the item, compare to statute of limitations for that item, and plan a strategy to address each.
Members of Hanscom FCU can request a free credit score review, including professional guidance on how to improve your score and possibly save money.