Denver City, Texas
324 North Main
Denver City, TX 79323
(575) 393-1596

3 Ways to Rebuild Your Credit September 18, 2020

3 Ways to Rebuild Your Credit, Denver City, Texas

Credit scores measure how well you’re able to manage and pay back debts. Lenders use this number, which ranges between 300-850, to determine whether to approve a request and what the loan interest rate should be. Many factors affect it, including how long you've been building your credit and your payment history. If your score is currently low due to missed payments, there are ways of increasing it again. Below are several tips from financial services professionals to help.

How to Repair Your Credit

1. Identify & Report Mistakes

National credit bureaus (like will provide a free copy of your credit report each year upon request. Carefully comb through it to look for mistakes. There may be false missed payments. A financial services professional can help you compare the report against your finances.

Next, dispute these errors with the lenders, collection agencies, and other institutions that reported them. 

2. Pay Down Balances

financial servicesYour score will increase as you lower credit card balances or catch up on late car loan payments. Doing this improves your available credit balance—how much credit you have through your credit cards—and, subsequently, your credit score. Start with your high-interest debts first, so you stop accruing more debt through the interest rates.

If you tend to forget when your credit card bill is due, set up auto-payments to cover at least the minimum balance. 

3. Get More Credit

A new credit card can be beneficial as long as you’re responsible. Many let you transfer high-interest debt from another card in a process called a balance transfer. The new card often has a no-interest promotional period or lower interest rate. The only stipulation is that these may have high penalty rates, so make sure you can meet the monthly payments on time. 

You also increase your total available credit, which can help improve your debt to credit ratio, thus improving your score. 

To rebuild your credit, consider a saving-secured Visa which pledges your savings account to obtain credit when you may not normally qualify.

Are you looking for a loan or a means of building your credit score? Contact Estacado Federal Credit Union in Hobbs, NM. This credit union has welcomed customers for 65 years and offers a variety of financial services. Their skilled team will help you explore car financing and mortgage loans. Call (575) 393-1596 X2013 to speak with a loan officer. Connect on Facebook for more finance tips. You can learn more about the credit union on their website.

Other Announcements, Events and Deals from Estacado Federal Credit Union
3 Reasons to Maintain Multiple Savings Accounts, Denver City, Texas
Savings accounts allow you to set aside cash for safekeeping until you’re ready to use it for your various financial goals. While less accessible than a checking account, your more
Credit Union vs. Bank: What's the Difference? , Denver City, Texas
When you need a place to deposit your money, you have two primary options at your disposal: banks and credit unions. Both financial institutions offer checking and savings more
What Tax Benefits Do Home Equity Loans Offer?, Denver City, Texas
When you purchase a home using a mortgage, you steadily make payments to gain equity in the home until you own it outright. Home equity loans provide funding to more
The Differences Between Checking & Savings Accounts, Denver City, Texas
When it comes to managing your money, you need a relationship with a financial institution, like a credit union, to keep the funds safe while ensuring access when you need it. You more