Calculator and magnifying glass on a yellow background with a sign that reads Build Good Credit.

A Free Guide to Understanding & Improving Your Credit Score

, ,

A Free Guide to Understanding & Improving Your Credit Score

Hey everyone! It’s your friendly neighborhood financial guru here, and guess what? It’s the perfect time to talk about something super important for your financial well-being: your credit score.

Now, I know “credit score” might sound a little intimidating. But trust me, it’s not as scary as it seems. Think of it like a report card for how well you manage your money, especially when it comes to borrowing. This three-digit number plays a big role in many parts of your life, from getting a loan for a car or a house to even renting an apartment.

That’s why we at United Fidelity Bank believe that understanding your credit score is a key ingredient in your recipe for financial success. And to help you on this journey, we’ve got a tool that puts you in the driver’s seat: our very own Credit Score tool, available right within your online and mobile banking!

Yep, you heard that right! No need to go searching all over the internet or pay for expensive services. If you’re a United Fidelity Bank customer, you have access to this powerful FREE resource right at your fingertips. Let’s dive into what makes our Credit Score tool so awesome and how it can help you achieve your financial dreams.

Why Should You Care About Your Credit Score?

Before we get into the nitty-gritty of the tool, let’s quickly chat about why your credit score is such a big deal. Imagine you want to buy a new car. When you apply for a car loan, the lender will look at your credit score to decide if you’re a reliable borrower. A good credit score (usually above 670) shows them you have a history of paying your bills on time and managing your debts responsibly. This can mean getting approved for the loan with better interest rates, saving you money in the long run.

It’s not just about loans, though. Landlords often check credit scores when you’re applying to rent an apartment. Utility companies might use it to determine if you need to put down a security deposit. Even some employers might peek at your credit history as part of their hiring process (though this is becoming less common and varies by location).

So, having a healthy credit score opens a lot of doors and makes your financial life much smoother. But how do you get a good score? That’s where understanding how it’s calculated comes in handy, and our Credit Score tool is here to help you with just that!

Understanding How Your Credit Score is Calculated

Ever wondered what goes into that mysterious three-digit number? Our Credit Score tool breaks it down for you! It shows you the key factors that influence your score, like:

  • Payment History: 40% of your score is payment history – a snapshot of how well you’ve paid your bills on time. Consistently paying your bills on time is important.
  • Credit Usage: 23% of your credit score is based on the amount of credit used out of the total credit available. Experts recommend using less than 30% of your total credit.
  • Account Mix: 11% of your score is based on revolving credit (credit cards) and installment accounts (student loans, auto loans, mortgage).
  • Credit Age: 21% of your score is credit age. The longer your credit history, the better.
  • Inquiries: 5% of your score comes from “hard” inquiries, such as when you apply for a loan or credit card.

By showing you these factors, our Credit Score tool helps you understand what you’re doing well and what areas you might need to focus on to improve your score over time. It’s like getting a personalized roadmap to a better credit future!

More Than Just a Number

Our Credit Score tool is so much more than just a number! It’s packed with features designed to give you a complete picture of your credit health and empower you to make smart financial decisions. Let’s take a closer look at some of the things you can access:

  • Personalized Credit Report: Get a detailed look at your credit history, including information about your accounts, payment history, and any negative items that might be in your report. Understanding your credit report is the first step towards taking control of your credit. Our tool makes it easy to read and understand, so you can spot any errors and address them.
  • Real-Time Credit Monitoring Alerts: Life moves fast, and sometimes things happen that can affect your credit without you even realizing it. With real-time credit monitoring alerts, you’ll get notified if there are any significant changes to your credit report, such as new accounts being opened or changes in your credit balances. This helps you stay informed and quickly address any potential issues, like fraudulent activity.
  • Credit Score Simulator: Ever wonder how a certain financial decision might impact your credit score? The Credit Score Simulator lets you play around with different scenarios, like paying off a chunk of debt or opening a new credit card (though be careful with that one!). This helps you understand the potential consequences of your actions before you take them, allowing you to make more informed choices that support your credit goals.
  • Credit Score Education: We believe that knowledge is power! That’s why our Credit Score tool includes educational resources to help you learn more about credit scores, how they work, and what you can do to improve yours. You’ll find helpful articles, tips, and explanations right within the tool, making it easy to boost your financial knowledge.
  • Set Credit Goals: Do you have big financial dreams? Maybe you’re saving up for a down payment on a house, or perhaps you want to qualify for a better interest rate on a future loan. Our Credit Score tool can help you get there with its personalized Credit Goals feature!
  •  This is tricky because we don’t own the tool – may be best to remove this statement.  Sorry I didn’t mention that the 1st time.

The Best Part? It’s Absolutely FREE!

Yes, you read that correctly! Our Credit Score tool is absolutely FREE for all United Fidelity Bank customers. You can check and refresh your credit score and credit report daily without impacting your score at all. That’s right, checking your credit score with our tool won’t hurt it! So, there’s really no reason not to take advantage of this valuable resource.

Think about it – you get access to your credit score, personalized reports, real-time monitoring, a simulator, and educational resources, all for free, right within your online and mobile banking. It’s like having a personal credit advisor available 24/7!

Your Partner in Financial Wellness

At United Fidelity Bank, we’re more than just a bank – we’re your financial partner. We understand that navigating the world of finance can sometimes feel overwhelming, and we’re here to provide you with the tools and resources you need to succeed. Our Credit Score tool is just one of the ways we’re working to help you build a brighter financial future.

By offering this free and comprehensive tool, we hope to empower you to take control of your credit, understand your financial health, and achieve your goals. We believe that when you’re financially confident, you’re better equipped to handle whatever life throws your way and pursue your dreams with greater peace of mind.

What are you waiting for?

It’s time to unlock the power of our Credit Score tool and start taking control of your financial future!

Here’s how to get started:

  1. Log in to your United Fidelity Bank Online Banking account. You can do this through our website or our mobile app.
  2. Look for the “Credit Score” tool. It’s located on the main menu or dashboard.
  3. Enroll in the tool. It’s a quick and easy process.
  4. Start exploring! Check your score, review your report, set some goals, and dive into educational resources.

It’s that simple! Enroll in our Credit Score tool today to better understand your credit and work toward a brighter financial future. We’re here to support you every step of the way.

Multiple cell phone screens displaying different aspects of the United Fidelity Bank Credit Score tool.

Credit Score Is Not Just a Score

,

Not Just a Score!

April is Financial Literacy Month. At United Fidelity Bank, we believe that knowledge and understanding is the key to unlocking financial success. Understanding your credit is part of financial literacy and wellness. That is why we offer our customers Credit Score.

Your credit score is an essential factor in your finances, and many variables go into calculating this three-digit score. Located right within our online and mobile banking, you have the tools to understand how your credit score is calculated. Knowing what gets calculated and how will help you understand how to keep your credit score healthy in making the best decisions.

Do you have financial goals? Do you want to improve your credit score to achieve those goals? In Credit Score, you can create personalized Credit Goals. By selecting your desired credit score and a timeframe in which you want to achieve that goal, you will see recommendations and progress tracking to get you where you want to be.

More Than Just a Score

Our Credit Score tool goes beyond simply displaying your score. It provides you with a comprehensive suite of resources to manage and monitor your credit effectively:

  • Personalized Credit Report: Gain a detailed understanding of your credit history.
  • Real-time Credit Monitoring Alerts: Stay informed about any changes to your credit report.
  • Credit Score Simulator: Explore how different financial decisions may impact your score.
  • Credit Score Education: Access valuable resources to enhance your credit knowledge.
  • And More!

Free, Secure, and Convenient

The best part? Our Credit Score tool is completely FREE. You can check and refresh your credit score and credit report daily without worrying about negatively impacting your score. This allows you to stay on top of your credit health and make informed financial decisions with confidence.

Your Partner in Financial Literacy

We’re committed to supporting you on your financial literacy and wellness journey. Our Credit Score tool is designed to empower you with the knowledge and resources you need to achieve your financial goals.

Ready to Take Control of Your Credit?

Learn more about our Credit Score tool and start your journey towards financial empowerment today!

www.unitedfidelity.com/credit-score

Need Assistance?

If you require assistance logging in or setting up the mobile app or online banking, please don’t hesitate to call us at 1-800-280-8280. We’re here to help you every step of the way.

Cell phone displaying a rating meter showing a good credit score of 720

Take Charge of Your Financial Health with United Fidelity Bank’s Credit Score Service

,

Take Charge of Your Financial Health with United Fidelity Bank’s Credit Score Service

Managing your credit score is one of the most important steps to securing your financial future. A good credit score doesn’t just mean access to loans and credit cards; it can also open doors to better interest rates, rental approvals, and career opportunities. At United Fidelity Bank, we understand the importance of credit health, which is why we offer our innovative Credit Score Service.

Additionally, knowing how to improve and maintain your score with practical strategies can make all the difference in achieving your goals. Let’s explore what makes credit scores so impactful, the benefits of United Fidelity Bank’s service, and some proven tips to enhance your financial health.

What is a Credit Score and Why Does It Matter?

A credit score is a three-digit number that represents your creditworthiness. Ranging from 300 to 850, this number gives lenders a snapshot of how responsibly you handle credit. A higher score reflects a strong history of managing debt, while a lower score may indicate potential risk to lenders.

Think of your credit score as your financial report card. It’s calculated based on your borrowing and repayment behavior and influences how much you can borrow and at what interest rates. A good score can save you thousands of dollars in interest over time.

Key Factors That Affect Your Credit Score

Understanding how your credit score is determined is the first step to improving it. The main factors include:

  • Payment History: Your payment history accounts for 35% of your credit score. Paying bills on time is crucial as late payments can significantly hurt your score.
  • Credit Utilization Ratio: This is the percentage of your available credit that you’re using. For instance, if you have a credit limit of $10,000 and a balance of $3,000, your utilization ratio is 30%. Experts recommend keeping this below 30%.
  • Length of Credit History: The longer your accounts have been active, the better. This shows lenders that you’ve managed credit responsibly over time.
  • Credit Mix: Lenders like to see a variety of credit types, such as credit cards, mortgages, and auto loans. Having a balanced mix can boost your score.
  • New Credit Inquiries: Each time you apply for credit, it can slightly lower your score. Try to limit applications to avoid unnecessary hits.

Why Your Credit Score Impacts Major Life Decisions

  • Homeownership
    • Dreaming of buying a home? Your credit score will play a key role in determining your mortgage eligibility. A higher score can help you secure a lower interest rate, reducing your monthly payments and saving you money in the long run.
  • Loan Approval and Interest Rates
    • Whether it’s a personal loan for a wedding or an auto loan for your next car, lenders use your credit score to decide the terms of your loan. Borrowers with good scores often enjoy lower interest rates and more favorable repayment options.
  • Renting or Leasing
    • Many landlords check credit scores as part of the tenant screening process. A good score can make the rental process smoother, while a poor score might lead to higher security deposits or application rejections.
  • Employment Opportunities
    • Employers may review your credit history as part of the hiring process. A good credit score reflects financial responsibility, which can appeal to potential employers.

The Exclusive Benefits of United Fidelity Bank’s Credit Score Service

At United Fidelity Bank, we’re committed to helping you achieve your financial goals. That’s why our Credit Score Service is designed with tools and resources to empower you on your journey to better credit.

  • Daily Credit Score Updates
    • Knowing where you stand is half the battle. Our service provides daily updates to your credit score, allowing you to monitor your progress. Regular monitoring helps you spot inaccuracies and identify trends, so you can adjust as needed.
  • Real-Time Credit Monitoring Alerts
    • Identity theft and fraudulent activities are real threats to your financial health. With our real-time monitoring, you’ll receive alerts for suspicious changes to your credit report. This early detection allows you to take immediate action to protect your credit.
  • Personalized Financial Health Checkup
    • United Fidelity Bank is here to guide you every step of the way. Whether you’re trying to reduce debt or understand how to improve your score, we can suggest strategies and actionable advice tailored to your unique needs.
  • Credit Score Simulator
    • Have you ever wondered how opening a new credit card or paying off a loan might affect your score? Our Credit Score Simulator allows you to test different scenarios and predict their impact on your credit health. This tool helps you make smarter financial decisions.

Six Tips for Improving Your Credit Score

Good habits are essential for building and maintaining a strong credit score. Here are six practical strategies to help you improve your credit:

  1. Review Your Credit Reports – Start by checking your credit reports for accuracy. Errors such as incorrect payment histories or fraudulent accounts can hurt your score. You’re entitled to one free credit report annually from the three major bureaus—TransUnion, Equifax, and Experian.
  1. Pay Bills on Time – This is the single most important factor in your credit score. Set up reminders or enroll in automatic payments to avoid missing due dates. Even one late payment can have a significant impact.
  1. Manage Credit Card Balances – Keeping your credit utilization ratio low is key to a healthy score. If you’re carrying high balances, create a plan to pay them down. Remember, using less than 30% of your credit limit is ideal.
  1. Maintain Long-Standing Accounts – Length of credit history matters, so think twice before closing old credit accounts. Even if you don’t use a card very often, keeping the account open can help your score.
  1. Be Cautious with New Credit Applications – While applying for new credit is sometimes necessary, avoid doing it too often. Each application results in a hard inquiry, which can slightly lower your score. Space out applications to minimize the impact.
  1. Diversify Your Credit Mix – If possible, balance your credit profile with a mix of credit types. For example, responsibly managing a credit card and an auto loan shows lenders that you can handle different financial obligations.

Step-by-Step Guide to Enrolling in United Fidelity Bank’s Credit Score Service

Getting started with our Credit Score Service is simple:

  1. Log in to Your Online Banking Account: Access your account through our website or mobile app.
  2. Find the Credit Score Section: Locate the “Credit Score” tab on your dashboard.
  3. Complete the Enrollment Process: Follow the prompts, review the terms, and provide necessary details, such as your Social Security number.
  4. Start Monitoring: Once enrolled, you’ll gain access to all the tools and features designed to improve your credit health.

Frequently Asked Questions About Credit Scores

  • What is a good credit score? Generally, a score above 700 is considered good, with excellent scores starting at 750 or higher.
  • Does checking my credit score lower it? No, using tools like United Fidelity Bank’s service allows for soft inquiries, which don’t affect your score.
  • How often should I check my credit score? Regular monitoring is key. With daily updates available, staying informed has never been easier.
  • How long does it take to improve a credit score? Results vary, but consistent good habits can show improvements within a few months.
  • Can I dispute errors on my credit report? Yes, and you should. Disputing inaccuracies can help restore your credit health.

Start Building Your Financial Future Today

United Fidelity Bank’s Credit Score Service gives you the tools, insights, and support needed to take charge of your credit health. From daily updates to personalized advice, our goal is to empower you to make smarter financial decisions. Enroll today and begin your journey toward a brighter financial future.