If you have poor credit, the good news is you are not alone. Approximately 40% of Americans under the age of 40 have what is considered a poor credit score.

What most people don’t realize is that credit mistakes can be fixed with only a small amount of time and effort. You can even start this process on your own today. 在本文中, you will find Element’s expert advice on repairing your credit so that you can achieve financial freedom.

回顾你的信用

While you may know your credit score number, it’s also important to know what is driving your score.

• 访问annualcreditreport.com to view your credit report
• You can review your FICO score through 元素 mobile and online banking
• Schedule a complimentary credit review with a financial wellness expert from 元素

There are various factors that make up your credit score. The chart below shows the criteria used by the FICO score generator and each factor’s importance to your credit score. Knowing this will allow you to better understand what factors are poorly affecting your score.

It could be that your length of credit history is short, so you just have to be patient while your score builds over time. Or maybe you have been maxing out your credit card each month and never realized that credit capacity affects your score. 无论你的情况如何, there are opportunities to improve each of the 5 factors that make up your credit score. 

重建信用

Use these key steps to kickstart the rebuilding process.

按时支付账单

It takes 24 on-time payments to get one late payment removed from your report.

• Pay all your bills on time, every month
• If you have any past-due accounts, bring them current and make on-time payments going forward
• Consider setting up automatic payments or payment reminders to help ensure you are never late with a payment

Use a Small Portion of Your Credit Limits

• Pay down credit card balances
• 保持信贷额度畅通
• Utilize 30% or less of your overall credit limit

考虑一个有担保的账户

You can use these products to help improve your credit:

信用建立者贷款: Once you are approved, funds are held in your savings account. You receive the loan amount ‘savings’ once loan is paid in full.

担保信用卡: You are responsible for funding the limit. You’re able to use this just like a normal credit card and build your history with on-time monthly payments.

Be Careful with New Credit

Opening new credit card accounts, or even just applying for them, can affect your credit score.

• Only consider opening new cards or raising your credit limit if you have the self-discipline to control your spending.
• Increasing the amount of credit you have available could improve your credit utilization ratio
• Too many hard inquiries in a short amount of time can negatively affect your score

偿还债务

Our experts recommend these 3 strategies to pay down debt. While all can be useful for reducing your debt, some methods make more sense for certain people and situations.

债务雪球: Focus first on your debt with the smallest balance

债务雪崩: Focus first on your debt with the highest interest rate

债务整合: Refinance your debt to a loan with a simple lower interest rate

Have questions or need trusted advice? Our credit union experts are always here for you. Contact 利记app官网 for support in all aspects of your financial life.

Learn more about your credit from a previously live broadcast of 元素 Live. Click here to watch the seminar.

This information is provided for informational purposes only. It does not constitute legal, tax or financial advice. Consult with your tax, legal or financial adviser before taking any action.