This past month First Financial’s AVP of Lending & Sales, Nancy Culp, provided our seminar attendees with information on the importance of credit, what makes up your credit score, rates and fees and ways to improve your credit score.
Taking the information below and applying it will strengthen and increase your credit score and we promise it will make your life that much easier.
- Importance of credit: Good credit helps you build personal financial wealth, allows you to secure goods and services now but pay for them later and also increases the confidence of lenders and creditors. Your score even affects interest rates and the fees you pay and helps you achieve short and long term goals.
- What makes up your credit score: Your credit score is actually a mathematical equation that evaluates different information that is on your credit report in order to identify your future credit risk. Your credit reportdoes not contain information about your income. Visit this site for additional credit score information. If you would like to see your credit report, you can go to Equifax, Experian or Trans Union Corp.
- Ways to improve your credit score: Make sure you pay your bills on time and try to keep your credit card balances low and pay them off when possible. You want to get your bills current and stay current. You also don’t want to close unused credit cards to try and boost your score. It will actually raise your balance to limit ratio and can lower your score. So try to not open unnecessary credit card accounts if you can avoid it.
How long does information remain on your credit report?
- Bankruptcy: 10 years
- Judgment, Suit: 7 years
- Tax Lien: 7 years
- Collection, Charge-off: 7 years
- Inquires/Late Payments: 2 years
In order to obtain loans after a derogatory credit, you will first need time. You will then need to write a letter to accompany your request to explain the discrepancies. It’s very important to be honest and provide documentation that supports settlements or credit correction.
In order to fully understand the importance of your personal credit, we urge you to utilize our First Score program. First Score is a low cost, interactive session with a First Financial expert, which simulates your credit score with various “what if” scenarios. First Score will tell you what you need to do to reach your financial goals and what actions will help you increase/decrease your credit score. You can email us at firstname.lastname@example.org or call 866.750.0100, Option 2 to get started today – or leave a comment below and a representative will contact you.