placeholder

Band Title

Band Subtitle

placeholder

Zone Title

Zone Subtitle

placeholder

Feature Wrap Title

Feature Wrap Subtitle

placeholder

Credit Scores 101: Understanding & Building Your Credit

Credit Scores 101: Understanding & Building Your Credit

Megan Seamans Megan Seamans
4 minute read

Listen to article
Audio generated by DropInBlog's Blog Voice AI™ may have slight pronunciation nuances. Learn more

We all have diverse financial lives, many of which are supported by loans and credit cards. Borrowing money can be a valuable financial tool when used correctly and cautiously. Mortgage loans can help you achieve your homeownership goals. Student loans can make it possible to get the degree of your dreams. Business owners looking to start or expand their companies can use business loans to reach their goals. Building your credit is the first step toward a strong financial future.

Although borrowing money can be a great option, it's not always available to everyone. Each individual has a credit score, which helps lenders determine whether to approve a loan or credit card for them. Credit scores can be confusing, but they don't have to be.

Keep reading to get all your questions about your credit score answered. Find out what a credit score is, how your score is determined, and tips and resources on how to improve your score in the future.


What is a Credit Score

A credit score is a number that shows lenders how likely you are to repay borrowed money. Your score reflects your financial history, and it helps lenders decide whether to approve a loan or credit card to you, as well as what terms to offer. You can view your score for free without a hard check in the Vibe online banking or mobile app. 


What Factors Determine Your Credit Score

If you're wondering what determines your score, keep these financial activities in mind. Payment history is one of the largest factors in your credit score. Missing even one payment can lower your credit score. Keeping up on bills is essential, as it shows lenders you are reliable regarding money owed. Credit utilization, length history, and credit mix are the other significant factors in determining your score.


Building Your Credit Score from Scratch

If you have a credit history, it can be easier for lenders to determine your financial reliability. Building your credit from scratch doesn't have to be complicated or intimidating. Here are a few simple ways to jumpstart your credit history. We recommend starting small and keeping your balances low and your payments on track for maximum results.

Get a secured credit card.

You pre-load these credit cards with a refundable deposit, which becomes your credit limit. Using the card responsibly will grow your credit history.

Get a co-signer or become an authorized user.

Ask a trusted family member or friend to co-sign on a loan or credit card with you. Their credit score will be taken into account, helping you qualify. You can also become an authorized user of someone you trust's credit card. You will benefit from their positive payment history without being responsible for the balance.

Get a credit builder loan.

A positive payment history is the best way to build your credit score. Borrow between $1,000 and $5,000 with this fixed-rate, 12-month term loan. Loan proceeds are deposited into a Special Savings Account and remain on hold until the loan is paid in full. See our website for more details.


Vibe Credit Score Resources

Vibe's online banking platform and mobile app feature a powerful credit score monitoring tool to help you stay on top of your financial health. This tool tracks your credit score monthly and provides a detailed breakdown of the factors impacting your score, including your score rating, payment history, credit usage, account mix, credit age, and inquiries. It offers a personalized credit score action plan, empowering you to take the necessary steps to improve your score over time. It's a simple yet effective way to gain control of your credit and work toward achieving your financial goals.


Building and maintaining a solid credit score is a journey, but with the right tools and knowledge, you can take control of your financial future. Whether you're building your credit from scratch, looking to repair past missteps, or simply maintaining a solid score, Vibe Credit Union is here to support you. With resources like our credit monitoring tool and tailored financial solutions, achieving your goals is within reach. Start taking proactive steps today and let your credit work for you.

« Back to Blog