Financial Education
Building your credit history
Your credit is the key to success. Protect it.
Introduction to Credit
Do you want to purchase a house, car or maybe even pay for your children's college? Your credit history is the most important tool when you are ready to take these financial steps. When you use credit successfully, you will enjoy great financial advantages in the long run.
Benefits of Good Credit
- Enjoy lower interest rates
- Better financing options
- Ease of opening credit when you need it
Your Credit Report
What is a credit report?
Your credit report is a summary of your financial activities and includes information about your credit accounts and/or loans, pending balances, and your payment history. This information is provided by the companies you have a financial relationship with. The information itself is organized and filed by the credit reporting agencies.
Who can access my report?
The information on your report is confidential and is only provided to other people or companies that have a legitimate reason to request this information, such as:
- Companies where you have an account or have applied for credit
- Employers where you have applied for work or for promotion/retention purposes
- Insurance companies to open a policy or renew an existing policy
- Federal agencies review your financial status to determine eligibility for federal benefits
Your Credit History
Make your payments on time
It is very easy to skip a payment. But skipping payments may lower your credit score dramatically.
Don't open multiple accounts too quickly
It is important that your history show reliability and stability. When you open too many accounts in a short period of time you risk overextending your ability to repay your debt.
Review your credit report regularly
Review your credit report at least once a year to ensure that all the information reported is correct.
Contact your creditors
If you are having trouble making a payment, call the creditor. More often than not, these companies have special programs that will help you during a difficult period and avoid negative reporting.
