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ACU of Texas Blog

Building Your Credit

Posted on February 05, 2018

Did you know that a good credit score is for more than just getting a credit card? Lenders, landlords, insurers, utility companies and even employers rely on your credit score to decide whether or not to extend products and services to you.

Understanding what lends are looking for is the first step to building credit history. When borrowing for the first time, lenders are unable to look at your credit score or payment history and turn to alternative sources, such as:

  • Checking & Savings Account History
  • Employment History
  • Residential History
  • Utility Payment History

Keeping your bank accounts in good standing, having steady income and paying your bill all play a part in preparing you to be a qualified buyer.

Knowing what can hurt your credit score is critical in helping you maintain and build good credit:

  • Paying Late or Not At All
  • Account Charged Off or Sent to Collections
  • High Credit Card Balances
  • Maxed Out Credit Limits
  • Closing Credit Cards with Outstanding Balances or Available Credit
  • Closing Older Credit Card Accounts
  • Defaulting on a Loan
  • Having Only Credit Cards

Your credit card score is calculated based on five categories that lender review:

  • Payment History (35%)
  • Capacity (30%)
  • Length of Credit History (15%)
  • New Credit (10%)
  • Type of Credit Used (10%)

Improve your score with the following tips:

  • Review Your Credit Score & Report
  • Make Loan Payments On Time
  • Be Careful When Opening New Accounts
  • Pay Bills On Time
  • Pay Off Your Credit Card Debt
  • New Close Credit Cards

To obtain a free copy of your credit report, visit

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