The financial system can be confusing, whether you’ve been paying bills for 50 years or five months. And one of the major aspects of the financial system is something many still don’t understand. Namely: your credit score. Your credit score at its bare bones is simply an indicator of reliability. Discover more about your credit score and tips to make it better for you and your future from Essential Federal Credit Union. As a premier Baton Rouge credit union, we have the info you need.
What To Be Aware Of
For many of us, our credit score is always at the back of our minds. However, if a bad score is on your record and you try to get a loan for a piece of property, you can be looking at rejection or even a gigantic interest rate. For those struggling to upgrade their lives, a bad credit score can be a major roadblock.
So, what is there to do? There are great ways to take care of your credit to raise your score and keep it high. Things like:
- Paying your bills on time. Remember how we said that a credit score is all about reliability? By paying your bills on time through your credit card, you’re showing banks and other organizations that you’re good with your money. And you can be trusted to pay the money back.
- Keeping your credit card utilization low. Paying off your bills is one thing, but your credit score is also determined by how much money you owe in the first place. If you’re the kind of person that regularly uses your credit card, make sure to pay the bill regularly and before the end of the month. This also shows that you’re good with your money and aware of your spending habits. Paying off these credit card debts also increases your score.
- Don’t apply for new credit too often. Some people think that their score goes up with more accounts. While this is true, if you do it too much, you may drop due to hard inquiries. Too many hard inquiries on your score too often lower it. These inquiries can stick around for up to two years.
Many more factors apply to determine your score. Find out more by talking to one of our representatives.
Join Our Financial Webinars
Don’t sit and wait for good things to come. Take a look at some of our upcoming financial seminars to see how you can improve your financial situation. Register and attend, and you’ll be automatically entered to win $250!
Discover More With Your Baton Rouge Credit Union
Want to learn more about credit scores from the professionals? Find out more with Essential Federal Credit Union by giving us a call to our Baton Rouge credit union on Siegen Lane or the others in the Baton Rouge area. We’re more than happy to help you get on top of your financial needs.