Understanding Your Credit Journey
Your credit score is one of the most important numbers in your financial life. Whether you're buying your first home, getting a car loan, or applying for a credit card, your credit history tells lenders how reliably you've managed debt in the past.
At Sunmark Credit Union, we believe financial empowerment starts with understanding credit. A strong credit score can save you thousands of dollars in interest over your lifetime, while poor credit can limit your options and cost you more money.
What affects your credit score?
- Payment history (35% of your score) - Pay bills on time, every time
- Credit utilization (30% of your score) - Keep balances low on credit cards
- Length of credit history (15% of your score) - Keep older accounts open
- Credit mix (10% of your score) - Mix of credit cards, loans, and mortgages
- New credit inquiries (10% of your score) - Limit hard inquiries
Building good credit takes time, but the benefits last a lifetime. Start with small steps like paying bills on time and keeping credit card balances low. Even if you've made mistakes in the past, you can rebuild your credit with consistent, responsible habits.
Credit Questions Answered
Get answers to common credit questions from Sunmark's financial experts.Check Your Credit Report
Get expert help understanding your credit. Our staff will explain each item and discusses improvement options.Build Payment History
Set up automatic payments for all your bills. Payment history is the biggest factor in your credit score.Manage Credit Utilization
Keep credit card balances below 30% of your limit. Lower utilization shows lenders you can manage credit responsibly.Choose Smart Credit Products
Select credit cards and loans that fit your needs. Sunmark offers competitive rates and terms for members.Start Your Credit Journey Today
Sunmark's Free Review of Credit
1/17/24
What is it and why is it important?
Credit - money that a bank or business will allow a person to use and then pay back in the future (Britannica Dictionary 2024)
Someone with good credit health will not only have an easier time obtaining loans, credit cards, and lines of credit, they’re also more likely to have lower interest rates which means more money saved. Having “good” or “bad” credit is a reflection of a person’s overall credit health. Credit health is impacted by various factors, including:
- Payment history
- FICO® Score
- Debt size
- Income
- Types of credit
- Length of credit history
The first step to building strong credit and a high credit score is knowing what’s in your credit report. A “Review of Credit” will help you determine what financial behaviors you should be taking to rebuild, improve, or maintain your creditworthiness. Committed to the financial wellness of the community, Sunmark Credit Union offers members a free Review of Credit which should be done at least once a year.
Understanding the different components of your credit report can feel overwhelming, but Sunmark’s knowledgeable staff members will explain each item and provide valuable information such as:
- Your credit score
- Payment history
- Loan balances
- Types of credit (revolving, installment, or service)
- Number of open accounts in your name
Knowing what your credit is comprised of can help prevent errors that may lead to a lower credit score (and higher rates on loans) and may even protect you against identity theft. Sunmark Credit Union’s representatives have the training and experience needed to help guide you with:
- Determining which loans or credit cards could be consolidated into a lower rate
- Identifying ways to pay down debt
- Methods to building credit over time
- Strategies for increasing your credit score
Start building a brighter financial future! Make an appointment for your FREE Review of Credit at Sunmark Credit Union:
- Stop in at any Sunmark branch, find your nearest location here
- Call 866.SUNMARK
- Fill out a contact form at sunmark.org/reviewofcredit
