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VBSFCU wants to not only meet your expectations we want to
exceed them. As part of our continuous effort to educate our members we would
like a chance to discuss what a credit score is and how it affects you. Your
credit score appears on your credit report and this relates to the rate you
qualify for at the credit union. This score can approximately range from 380 –
830 (the higher the better). Your credit score is derived of five basic items:
35% -
payment history
30% -
capacity (capacity is revolving balances versus limits)
15% - length of credit
10% - accumulation of debt in the last 12-18 months (how
fast are you adding new debt)
10% - mix of credit (installment debt versus revolving)
We would appreciate an opportunity to review your credit report,
which may result in saving you money by lowering your payments and rates.
Call 463-3650 ext 304 to set up an appointment, or email
mail@vbsfcu.org
We will provide you with the tools to increase your credit score
and a free copy of your credit report.
Important Tips on
Rebuilding Your Credit
Bills are on everybody’s mind. Paying bills is an inevitable and sometimes
unpleasant fact of life; however, not paying bills can create an even bigger
problem.
If you are experiencing or have experienced significant difficulties paying your
debts, you know that the situation is a personal catastrophe. Recovery in such
circumstances may take years, but there are some steps you can take to ease the
restoration of an acceptable credit rating.
1. Contact your creditors and your credit union. Be up-front about your problem
and try to negotiate a payment schedule that is acceptable to you and your
creditors. If you show a good-faith willingness to repay your debts, most of the
time you will find companies willing to assist you.
2. Bankruptcy. Although declaring bankruptcy may be unavoidable under certain
circumstances - catastrophic illness or medical expenses, for example - it
should be your last resort. Ultimately, declaring bankruptcy can slow credit
rebuilding much more than slowly paying off bills. And, bankruptcy remains on
your credit report for 10 years and is a court action that remains on public
records forever.
3. Secured loans and credit cards. One way to rebuild credit following a period
of bill-paying problems is a secured loan or a credit card. “Secured” simply
means that your savings are being held in a special account as collateral for
the line of credit. This money will be returned to you once the debt is paid or
the credit card account is closed. This process allows you to demonstrate that
you have recovered from your credit problems and can be trusted to pay your
bills. Also, good repayment performance may mean increases in the future.
4. Your credit report. Credit bureaus must provide you a copy of your credit
report at any time for a nominal fee. You have the right to challenge any and
all data in the report you feel may be in error. Ask your credit union about the
steps you can take to correct the information and for the contact information
for the credit bureau's) they use.
The Three Credit Bureau's
are:
Equafax -
www.equafax.com
TransUnion -
www.tuc.com
Experian -
www.experian.com
Protect
yourself by reviewing your credit report at least once a year. Please read
"Take
Control and Protect Yourself from identity Theft" for more information.
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