Credit. Those five little letters have the ability to inspire fear and raise blood pressure. If you have little to no credit history or a low credit score, RMLEFCU’s Credit Builder loan was designed with you in mind.
It works like this: RMLEFCU acts as a gatekeeper and loans you between $500-$5,000 with a rate determined by your FICO score and our signature loan rate. You make payments on the loan over a period of time, perhaps a year, and RMLEFCU puts the money in an interest-bearing savings account. Once the loan is paid off, you can access the full amount.
To help ensure your success, RMLEFCU will arrange for a low monthly amount and set up automatic repayment options. Just ask us the next time you’re in or call our main line at (303) 458-6660. You’ll know within minutes if you are approved.
Perhaps you already have a credit card. If so, make sure you are doing the following if you want to have the kind of credit score that will never lead to sentences that begin with “I’m sorry to have to tell you this but….”
- Become type A about when your bill is due and paying it in full. Make a Google calendar reminder, text yourself, have your friend hassle you, whatever it takes. The least you can do is pay the minimum balance, but you’re better than that. If you are still sending things via carrier pigeon (mailing it in) ensure it was received on time by calling the creditor and requesting confirmation.
- Keep your revolving credit card balances low. It may be tempting to try and rack up points but only charge what you KNOW you can pay off.
- Keep your debt to income ratio low. Calculate it by adding your minimum credit card payments, and other monthly debt payments, and then divide by your monthly income. Anything over 30 percent is risky.
- Don’t close old credit cards or lower the limit. This can negatively impact your payment history.
It is also very important to monitor your credit report and address any discrepancies as soon as possible. You can see a free credit report online once a year for each credit bureau at www.annualcreditreport.com.
Building your credit is achievable when you partner with RMLEFCU. In addition to our Credit Builder loan, we offer a first time Visa and automatic bill payment. No matter how checkered your financial past might be, we will review ways to help you wipe the slate clean.