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Financially Fit

How to Build & Repair Your Credit Score


Your credit score has a significant impact on your financial freedom as you begin to try to achieve some of those life goals, such as car and home ownership. Having a good credit score can lead to better rates on car and homeowners insurance and will establish you as a trusted borrower that will allow lender to trust you as a borrower.

But what if you haven’t established a good credit score yet or need to improve your credit score? Luckily, there are ways to do both. In this blog, we have highlighted the factors you need to know when it comes to your credit score.

How should I build my credit?

There are many great options for starter credit cards with no annual fee, but the key is to manage them responsibly. Making sure you are not spending above your means and that you are consistently making payments to pay off these credit cards is very important. Another way many young people establish credit for the first time is through student loans. Maing consistent payments on any debt is a great start to establishing a good credit score!

What is a good credit score?

These categories can vary depending on the score model. But according to FICO®, the measurements for a good credit score are as follows:

  • 300-579: Poor
  • 580-669: Fair
  • 670-739: Good
  • 740-799: Very good
  • 800-850: Excellent

Where can I find out my credit score?

There are many different resources for checking your credit report, but below we have highlighted a few of the most trusted sites for reporting:

What can you do to repair your credit score?

1. Check your credit report for any inaccuracies

If you notice any incorrect late payments being reported or other errors, be sure to report those immediately. Confirming the validity of your credit report and eliminating any errors is a great first step to repairing your credit score.

2. Setup automatic payments

An easy way to make sure you make your payments on time is by setting up automatic monthly payments. This will help you avoid the risk of late payments. This is a great habit to establish as you look to improve your credit score.

3. Pay down your debt

Have you been bogged down with a lot of unpaid credit card debt? Getting that debt paid down is a great way to start repairing your credit score. If possible, schedule out automatic monthly payments. Establishing a consistent payment history is a big step forward for a better credit score.

Maintaining a good credit score can go a long way to helping you achieve those long-term dreams, like home ownership. If you need further assistance building or repairing your credit score, consider our Credit Score Builder Program.* Our Credit Score Builder Program gives you the opportunity to prove yourself and potentially improve your credit score. Learn more about this program at the following link, https://bit.ly/3K3ExlM.

If you have further questions about establishing good credit habits, feel free to ask a CES Credit Union associate and we can provide you with advice for repairing or building your credit score!

*Loans subject to credit qualifications.

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