Credit is something that stays with you for your entire life, so it’s no wonder it’s an important aspect of your finances. Having good credit can help tremendously when you’re trying to purchase a house, get a lower interest rate on an auto loan, and even get approved for a rental application. If you have poor credit or no credit at all, don’t worry. We have some tried and true tips to help you build positive credit and maintain a competitive financial edge.
Open a Credit Card
This tip is best for those who have no credit and are looking to build some for the first time. By opening a credit card and making payments on it you are demonstrating your accountability to pay off debts in a responsible and timely manner. This will boost your credit score and let financial companies know that you can be trusted with your finances. Just be sure to pay it off in full every month to ensure no interest charges and negative credit effects. It is always best to look for credit cards with low interest rates and as many rewards as possible. Our VISA credit cards are a great option for people who are first starting out on their credit journey or who are wanting to improve their already established credit. Choose from our three card options and start raising that credit score!
Pay Off Outstanding Debt
This one may seem obvious, but if you have poor credit and also have a large amount of outstanding debt that is collecting mountains of interest, paying down the debt will help you not only get out of the hole but raise your credit score as well. The key here is to make consistent and on-time payments and, if possible, pay more than the minimum amount due. Missing payments on a credit card or loan is a quick way to damage the credit you’ve worked so hard to build, so be sure to budget your spending so you can make your payments.
Get an RMLEFCU Credit Builder Loan
The RMLEFCU Credit Builder Loan is perfect for doing just that, building credit! Whether your credit is damaged or non-existent, we can help you get in good standing in no time. All you have to do is apply and make low monthly installment payments into your loan account. We’ll keep the payments safe until you’ve completed them all then we’ll return the loan in full to you! In the end, you’ll come out with improved credit and all the funds you used to get there. That’s what we call a win-win!