Ready to raise your credit score? Do these things to build better credit and enjoy the perks of lower loan rates.
Experts recommend checking your credit report at least once per month. As an ACU of Texas member, you have free access to your full credit report and credit monitoring in Online Banking! This free tool offers daily score updates, personalized offers, credit simulators, and tips to help you improve your score.
Payment history makes up 40% of your credit score. If you're worried about missing a payment, or just a fan of convenience, set up automatic payments using our free Online Bill Pay. This will help you avoid late fees or missed payments, which could drop your score by up to 100 points.
This may be easier said than done, but reducing the amount of debt you have lowers your utilization ratio, which leads to a higher credit score. For a good credit score, keep your utilization below 50%. For a great credit score, aim to use 10% to 30% of your available credit. Sky-high balances or owing a high percentage of your credit limit can be less than ideal.
Leaving a credit card unused for six months or more can be risky. The card issuer could cancel your card. Instead, make a small purchase once a month and then immediately pay the bill. This shows lenders that you are a consistently responsible borrower. If you do decide to close credit accounts you rarely use, make sure not to close them all at once, causing your utilization rate to spike.
Your membership in Benefits Plus® will reap rewards quickly, as you begin to save money on purchases for travel, groceries, restaurants, movies, prescriptions and much more.