Your Credit Score Could Cost You Thousands of Dollars

Did you know that lower credit scores cost consumers thousands of dollars a year in finance charges?

Those with lower credit scores are charged higher rates on loans. Why? The lower score may indicate poor payment history, a high debt ratio, or not enough credit history. Heritage Credit Union has started a new program called creditwise to help those with lower credit scores.

The creditwise program was created to help our members find out their credit score, learn how to improve their credit score and save money. The first step is to evaluate your credit score, then we will offer suggestions that could lower your monthly payments, save you money. . .or both! It may be as simple as refinancing an existing loan, consolidating debt or for some, giving you the money you need to make your financial dreams come true.

So whether you are looking for a new vehicle, a recreational vehicle like a boat, ATV or motorcycle, or you want to refinance an existing loan, Heritage can help. For a FREE, no obligation credit evaluation simply contact your local branch to set up an appointment. Let them know you saw it on the web branch.

We will be happy to talk with you about how you can improve your credit score and get lower rates on loans. A loan with Heritage Credit Union could be the start you need to rebuild your credit and make tomorrow a better day.

What is included in your credit score?

1. How you pay your bills (35 percent)
   This is the most important factor in your credit score. It reflects how you have paid your bills in the past. Paying your bills on time is one of the best ways to increase your credit score.
2. The amount of money you owe and amount of credit you have available (30 percent)
   The second most important area is your outstanding debt. This is the total amount you owe on things like autos, your home, credit cards and store credit cards, etc. This is also the amount of credit you have available. For example, if you have a credit card with a $2,000 balance and a $10,000 limit you have $8,000 in available credit. That is better than having a $2,000 balance on a card with a $2,500 limit.
3. Length of credit history (15 percent)
   The length of credit history is how long you have been a borrower and how long you have a credit history with the same lenders.
4. Mix of credit (10 percent)
   Installment loans like auto loans and mortgages are better than revolving credit such as credit cards. It is also a good idea to have a mix of credit which will include both installment and revolving credit.
5. Accumulation of new debt (10 percent)
   The final category that affects your credit is how many credit applications you have applied for in that last 12-18 months and the amount of new accounts that have been opened. The more new accounts you open and recent inquiries will decrease your score.

7 Tips To Improve Your Credit Score

1. Pay down on your credit cards
2. Do not close your credit cards, even when you have paid them off
3. Make your payments on time
4. Slow down on opening new accounts
5. Acquire a solid credit history with years of history
6. Move revolving debt into installment debt
7. Periodically receive a copy of your credit report to check the accuracy