Credit scores play a huge role in your financial life. Lenders, including Allied FCU, use them to decide how likely you are to pay back a loan. A low credit score makes it harder for you to get a loan.

 You credit score affects other things, as well:

 ●       Interest Rates: A low credit score could raise your interest rate on a loan. That makes your monthly payments higher and means you are paying more to borrow money than someone with good credit.

 ●       Renting: A low credit score can keep you from renting a place to live or may result in a larger deposit to secure a lease. Landlords, property managers and rental agencies typically review credit scores and credit reports for a history of late payments or non-payments for rent.

 ●       Car Insurance: Insuring a vehicle can be expensive. You don’t need additional money tacked on for a low credit score, but that can happen if your credit score is low. Insurance companies may also turn you down for a low credit score.

 If your credit score isn’t great right now (below 670), that doesn’t mean you are doomed to a life of high interest rates and judgement from lenders. It just means you have work to do.

 Here are tips to raise your credit score:

●       Make all of your existing credit card and loan payments on time.

●       Pay off some of your debt faster by making more than the minimum payment each month.

●       Contact your lenders and request a lower interest rate.

●       Check your credit report for errors. Sometimes creditors make mistakes. Report those to the credit bureau so they get removed from your credit report.

●       Check out Allied FCU’s Credit Builder Loan to help with your repayment history.

The keys to improving your credit score are patience and time. It won’t happen overnight, but if you follow these tips, your credit score will start increasing.