3 Most Common Questions about Credit

3 Most Common Questions about Credit

Most people don’t worry about their credit score until it’s time for them to make a major purchase, and need to apply for a mortgage on a home or for a car. It’s smart to always know what your credit report looks like so that you can fix any erroneous information or work to improve a less-than-stellar score. Here are the 3 most common questions, which we hope will help you to stay on top of your credit and always get the best loan rates possible.

1.     Question: How can I obtain my credit report and how often should I check it?

Answer: You can obtain your credit report several different ways and one of the easiest is to go online. However, beware of sites advertising free credit reports because, in many cases, they request your credit card information, as well as payment. Visit the Federal Trade Commission to read more about imposter sites and how to spot them. You are entitled to a free copy of your credit report once a year through the website annualcreditreport.com. Once you have access to your report, you should check on a yearly basis to guard against identify theft and fraud.

2.     Question: What is a good credit score?

Answer: Most credit scores range between 600 and 800. A “good” credit score is around 700. Anything above 750 is excellent and will enable you to obtain some of the best interest rates on loans. If your credit score is below 700, it’s important to find out why and work on improving it. If you do have a low credit score, below 600, it may be hard or sometimes impossible to obtain a loan, so it is best to find out how to fix the problem.

3.     Question: If I have a low credit score, what can I do to improve it?

Answer: Some people may have a low score because they don’t have enough credit. To build credit, apply for a couple credit cards and remember to pay them off as you use them. After you’ve made payments on the cards for a couple of months, you will probably see your score start to rise. If your score is low because you have been delinquent on paying existing bills or have high debt, there are still ways you can boost your score. Many people learn how to rebuild credit with a secured credit card. A secured credit card is a real credit card. It reports to the 3 major credit bureaus, so it’s a great way to rebuild your credit. It’s like a debit card that you load with money; however instead of loading, you make a security deposit and monthly payments.

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OneUnited Bank, the nation’s largest Black-owned bank and FDIC insured, understands we have to focus on money and technology to close the racial wealth gap. With your support, by simply opening and actively using a OneUnited Bank account, we will continue to accomplish our mission!

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