Tips for 000 Score Members

Being in consumer loans I have talked to many members with all different credit scores. One question I get asked quite a bit by borrowers trying to finance their first loan is “How do you get a credit score? “How long should I take a loan out for to help build my score? When will I see it affect my credit?” If you are a first timer in the credit world, then this blog is the one for you! I am going to be going over a few tips and tricks I have learned along with the way of being an MSR II at PFCU.

Tip 1: Start small; baby steps. When it is your first time borrowing, you are generally going to want to ask for a lower amount just to get your feet wet in the lending world. Borrowing $1,000 vs $10,000 is a big difference in both monthly price and responsibility. Start small, then work your way up. Before you know it, you will be ready for a mortgage! This will help you build/maintain a credit score. 

Tip 2: Have a suitable cosigner in your corner. In most lending cases, if you are requesting a loan with no credit established yet, you are going to need a suitable cosigner for your first request(s). In most cases, a suitable cosigner is someone with a 640+ credit score, positive payment history, suitable debt to income ratio, and a steady income. Having a suitable cosigner can increase your odds on being approved for a loan with no credit yet established.  

Tip 3: Set up automatic payments. Setting up automatic payments is the best way to make your loan payments if you have a busy schedule. You can set up automatic payments to pull from either your savings/checking account OR from your paycheck directly as soon as it gets direct deposited into your account. By doing this, the only thing you will have to keep track of is having money in your account for it to pull every month. After a couple months of regular payments, it should start being reported to the credit bureaus (hence creating your credit score)! 

By following these easy steps, you will be right on track towards building a great credit score! If you have more questions on these tips, or others I did not mention, feel free to reach out to me at PFCU!

Taylor Seymour     

MSR II 

This blog is not on behalf of Peninsula Federal Credit Union.