Build, Protect, Succeed:
Credit Score Tips That Really Work

At LOC Credit Union, we know that your credit score plays a large role in helping you achieve your financial goals—from securing a lower interest rate on a car loan to qualifying for a mortgage. The good news is, improving your score isn’t as difficult as it may seem. By establishing a few smart habits and strategies, you can build a stronger credit profile and set yourself up for long-term financial success.

Stay on Top of Payments

• Even one late payment can have a significant impact. Setting up automatic payments or alerts inside the LOC Digital Banking app can help. If you do fall behind, it’s important to bring those accounts current to minimize the potential damage to your credit score.

Keep Credit Balances Low

• Aim for 30% or less of your credit limit: Credit utilization is a key factor in how your score is calculated. In general, lower utilization can help improve your credit score, which can in turn make it easier to secure new lines of credit.

Build a Long Credit History

• Don’t close old accounts unless necessary: Length of credit history matters, so older accounts can help. Keeping lines of credit open can help you maintain a lower utilization rate, due to their credit limits adding to your overall available credit.
• Use your accounts regularly but wisely: Small, consistent use shows activity and reliability.

Diversify Your Credit Mix

• Have a variety of accounts: A mix of credit cards, installment loans, and other accounts can strengthen your profile.

Limit New Credit Applications

• Apply for new credit sparingly: Each hard inquiry can cause a temporary dip in your score.
• Shop smart: When shopping for auto or mortgage loans, do it within a short window to minimize the impact.

Monitor and Protect Your Credit

• Check your credit report regularly. The SavvyMoney tool inside Digital Banking grants you regular access to your credit score and history at zero cost to you. Additionally, our Premier Checking Account includes ID Protect, which is another tool to regularly review your credit report..
• Dispute errors right away: Mistakes on your report can drag your score down unnecessarily. This is why it’s so important to keep a close eye on your credit report. Tools like SavvyMoney and ID Protect can help keep you notified and alert of any activity on your credit report.

At the end of the day, your credit score is more than just a number. It’s a tool that can open doors to number of different financial and life opportunities. We’re here to help you improve and strengthen your financial health, not just provide loans. By following these tips, using our free Financial Wellnesss Tools and additional financial education articles, you can be well on your way to stronger credit and brighter financial possibilities.

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