The Power of a Higher Credit Score | Cleveland Bradley County Teachers Federal Credit Union

While a high credit score isn’t everything in life, it does seem to play an important role in a number of life’s big moments, including house hunting and car shopping.

As a result, our team at Cleveland Bradley County Teachers Federal Credit Union wants to give you some tips on how you can start improving your credit score this month.

What’s a Good Credit Score?

When you have a good to great credit score, you are able to benefit from lower interest rates and a greater chance of approval for a loan.

Most credit scores among Americans range from 600 to 750. A good credit score is considered anything above 700. An excellent credit score is above 800.

Let’s take a look at steps you can take to boost your credit score:

Step 1: Check Your Credit Reports

When’s the last time you gave your credit reports a glance? If you paused when answering this question, then it has been way too long.

It’s important to review your credit reports regularly to ensure they’re free from errors and fraudulent activity. You’re entitled to three free credit reports each year, one each from Equifax, Experian and TransUnion. Take advantage and review your reports for accuracy.

Step 2: Pay on Time—Always

Better late than never really doesn’t work so well where your credit score is concerned. When you pay late, you are basically proving to potential lenders that you cannot be depended upon to pay your bills on time.

Each time you make a late payment, your creditor can report your activity to the credit reporting companies, which can cause your credit score to trend downward. That’s why it’s vitally important to pay on time, every time.

Step 3: Pay Down Your Debts

Part of a good credit score is having a positive debt-to-credit ratio. To get that, you want to pay down your debts, so your credit report will indicate you have much more credit than you do debt.

Start with one debt and work toward paying it off, while still paying the minimum on other debts. Once you’ve paid off that debt, move on to the next. And don’t close the credit account once you’ve paid it off—the open account without a balance is a positive on your credit report.

Are you looking for a place to put your money for a rainy day? Give our team at Cleveland Bradley County Teachers Federal Credit Union a call today to learn about our savings account options!