Your Credit Report
Credit is a part of life and maintaining a solid credit history is imperative. Your credit report will tell a lender:

• Past payment history
• Outstanding balances
• Length of time credit has been established
• Number of inquiries to your credit history
• Collection items, liens, judgements or bankruptcies
• Current and previous addresses as well as employer information

Request your personal credit report:

Equifax
Experian
Trans Union

If you’ve received your credit report and don’t quite understand what it means, stop by any of our branch locations and we’ll help you evaluate where you stand.

Review your credit report to make sure all the information is accurate. Report any inaccuracies to the credit bureau immediately.

Repairing Damaged Credit
If you’ve had troubles with your credit for whatever reasons, hang in there. Repairing damaged credit is a challenge, but there are ways to improve your credit rating:

• Pay your bills on time, don’t skip payments, pay more than the minimum.
• Don’t exceed your credit limit. Creditors compare your outstanding balance to your credit limit. It can damage your score to be at or near your limit.
• Stop using your credit cards. Limit your spending so you don’t further extend your credit obligations. Don’t necessarily close them, making timely payments will help reestablish your credit. With damaged credit, you’ll have a harder time getting new credit extended.
• It’s not a good idea to have too many or too few credit cards. Two to four is best.
• Determine where you stand. Make a chart: identify all your debts, amount owed, rate you’re paying, and time of month payment is due. Pay down your debts - start by paying off your those with the highest interest rate.
• Get a game plan, make a budget and stick with it. Keep track of your spending and get your finances under control.
• Negotiate with creditors to get a better interest rate. Contact your creditor, describe your situation and make payment arrangements.
• Limit additional requests for credit. Your credit file will show the number of inquiries into your credit. Too many can damage your credit.

Credit Card Payoff Calculator

Credit Card Hopping
Avoid credit card hopping. Frequently switching cards for better rates can damage your credit rating. Protect yourself by reading the terms carefully.

1. Low introductory rates are usually a short-term rate. Make sure and ask how long the teaser rate lasts and what does the rate change to after the introductory period.
2. Avoid balance transfer fees. Compare the balance transfer fee to the amount you’re saving with the lower interest rate. You’re not always gaining.
3. There may be a separate rate for transfers and for purchases. Cash advances will have a much higher interest rate.
4. Ask if there is an annual fee.
5. Be careful to make your payments on time. The special rate usually switches to a much higher default rate even if you pay late once.
6. Repeatedly transferring balances can damage your credit. Each time you open a new card a credit inquiry is made. Too many inquiries on your report is dangerous and will lower your score. It helps your credit to show clean payment history over a longer period of time. Opening and closing cards shows a shorter period of payment history.

The best way to free up debt is to eliminate it altogether. Stick with a credit card with the lowest, long-term fixed rate.