Looking for ways to help improve your credit? Check out these tips and tricks from our Brownsville Credit Union and help get your credit score back on track! Building up your credit score is important in order to invest in bigger purchases such as a home or a new vehicle.
Whether you are struggling with finances or just trying to perfect your credit score, there are dozens of ways to go about it. Here are a few ways:
Pay Credit Card Balances Strategically
An excellent way to build up your credit is by finding ways to pay off your other debts because lower is better in the world of finances. You want to ensure that your balances are at their lowest regarding credit card finances. A simple way you can conquer your credit card balances is by:
- Paying a little more than the minimum.
- Paying several times throughout the month.
- Put a windfall, such as a tax refund or bonus, towards your debts.
- Explore balance transfer options to move high-interest debt to a lower interest rate.
Ask For Higher Credit Limits
Once you reach a specific limit on your credit card or credit services, your balances will either lower or stay the same depending on the credit limit given. If you have increased income or have a boost in finances, you’ll get a more viable chance to elevate your credit limit. Keep in mind, this only works if you trust yourself to keep your spending habits in check.
Ask a Family Member to Co-Sign
This is recommended for big-purchases such as auto loans, or even consolidation. Asking a trustworthy loved one to help you co-sign on a loan can help prevent your credit score from lowering.
Work on Discipline
This year make an effort to create long-lasting habits to help you stay disciplined in your finances with our Brownsville Credit Union. To start, try:
- Automating payments to avoid late fees and penalties.
- Tracking your progress through VFCU Mobile Banking App to stay motivated.
- Creating a budget that covers your expenses and allows you to make multiple payments on your debts – even if they are small.
- Negotiating with creditors for lower interest rates, reduced settlements, or more favorable repayment terms. Sometimes creditors are willing to work with you to create a repayment plan that fits your budget.
Deal With Multiple Accounts
When dealing with multiple creditors you may have, create a plan to pay them off. You can do so by ranking your debts based on factors such as interest rates, outstanding balances, and any penalties for late payments. Consider using the debt snowball or debt avalanche method to prioritize which debts to pay off first.
- Debt Snowball Method: Pay off the smallest debt first, then use the money you were paying on that debt to pay off the next smallest debt, and so on.
- Debt Avalanche Method: Pay off the debt with the highest interest rate first, then move on to the next highest interest rate debt, and so on.
Get Credit for Rent and Utility Payments
Using your credit for rent and utilities is another way to boost your credit whenever you pay your rent on time. Although there are various options to consider, this is just one of the ways you can help increase your credit if you have good credit.
Consolidate!
At most times, being unable to pay for your credit cards or other creditors might be challenging for those with struggling finances. However, you can tackle those finances by considering a consolidation loan to help pay off your other creditors and only have to worry about the monthly payments of personal loans. This is an excellent option for those willing to build up credit and help maintain your finances.
Enjoy Benefits by Banking in Brownsville
VFCU Brownsville Credit Union is determined to help you on your journey to better finances and better savings! Furthermore, consider signing up for VFCU banking services and check out the potential benefits you can receive just for applying! You can sign up for:
● Mobile banking services
● Loans and credit cards
● Financial advising
● Free credit score reports
● Savings accounts
Get a Free Credit Score Report with Our Brownsville Credit Union
Boost your credit score by following these tips to help improve your credit! Grab your FREE credit score when you download the VFCU Mobile Banking App – available to VFCU members at our credit union in Brownsville and Cameron County.
