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making good credit a financial resolution with Teresa

Making Good Credit A Financial Resolution

January 30, 2023

From applying for a mortgage to getting a mobile phone plan, good credit can affect your life in many ways. Let’s talk about credit reports—your most important financial document.

So what is a credit report, anyway? A credit report is what lenders and others use to determine if you’re eligible for a loan or other responsibilities like applying for insurance or renting a property. A credit report calculates your credit score, which is basically a number that translates into how positive your financial activity is.

Check out the video below for tips on how to keep your credit score high.

Managing your debt is what it’s all about. Positive financial health will be reflected in a strong credit score.

So what’s your credit score? You can request a free credit report online to find where you stand at A score above 700 is considerate good.

There are three credit bureaus—Experian, Equifax, and TransUnion. Even though each of these companies do pretty much the same thing—collect financial information about consumers that they report to lenders– they are not connected. Lenders and other institutions are not required to report to every company, so the information contained on an Experian credit report may be different than the information on your Equifax report. This is why it’s so important that you check each report regularly. 

Set your calendar every year for good financial health.

If you want to increase your score, you need to make sure that the information the credit bureaus are collecting on your financial activity is positive. This includes, for instance:

  • Paying your bills on time
  • Not opening too many credit accounts
  • Maintaining a financially healthy difference between available credit and the credit you’re using

A person who demonstrates financial health is very careful about managing their debt so that the information on their credit report yields a strong credit score.

Want help building good credit?

If your credit score is lower than you’d like it to be, get in touch. We can work on building better credit together. Columbia CU is here for you.