If I need a co-signer, that means I have bad credit.
Needing a co-signer does not necessarily mean you have bad credit. If you have not established credit, the co-signer's purpose is to guide you and ensure the debt is paid on time. By making consistent and prompt payments and developing a credit history, you establish yourself as a responsible borrower.
It's better to pay my $200 car payment than my $10 credit card payment because the amount is higher.
Actually, the credit report only reports on whether the payment is on time, so any late payment, regardless of the amount, can flaw your credit report.
If I pay my loan off in six months, it will result in better credit than if I take the full two years.
Although it is great to repay quickly, the more history you have making payments on time, the better your credit will be.
A good way to build my credit is to open several credit cards.
It's not the number of credit cards you have, it's how you manage them. Keep your debt in balance with your ability to pay.
Your credit does matter. Nothing affects your financial future more than
your credit history. Lenders and landlords use it to assess your credit worthiness and your ability to repay debt or loans. Potential employers may even look at it to learn how responsible and dependable you are.
It's important to keep your credit in good shape because you need good credit for life's major purchases. Take hold of your financial future by developing a budget which will help you know what you can afford. You can reverse a bad credit score over time and RCU is here to help. Visit any RCU office today; we offer smart ways to plan for your future.
To build or improve your credit score consider:
Payments— Make at least the minimum payment each month, and mail it early or use RCU's Automatic Payment options or ePay to schedule your payments to ensure
payments are on time to avoid late charges.
Credit Limits— Avoid maxing out your limit. The money may not be available when you need it and high charges may occur when the balance is over the limit. Your total credit limits should not exceed 10% of your annual income.
Interest Rates— Know what rate you are paying, stay away from high rate cards, and be cautious of introductory rates.
Savings Account— Make regular deposits to build your savings account so you can keep your credit under control in the event of an unexpected expense such as vehicle maintenance,
medical bills, job loss, or taxes.
Checking Account— Balance your checking account monthly and avoid non-sufficient funds charges.
Employment— Remain at the same job or in the same field for at least 12-24 months, when possible.
Use the Credit Card Payoff Calculator.
Use the Debt Consolidation Calculator.