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This Credit Union is federally insured

by the NCUA.

Westerly ~ RichmondSouth Kingstown

www.westerlyccu.com 401.596.7000

WesterlyCommunity

Credit Union

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Building or Rebuilding my Credit

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1Savings Challenge will run from Jan 1, 2012- Dec. 31, 2012. See Member Service or our website, www.westerlyccu.com, for complete contest details.

Credit scores are three-digit numbers lenders use to gauge your creditworthiness and these days, lenders typically demand 740 scores for the best mortgage rates. Lower scores mean higher rates or perhaps no loans at all.

The good news is that it’s possible to boost your numbers if you have a handle on your fi-nances and you know how credit scores work.

First, you can’t raise your scores if your finances are still in free fall. If you’re un-able to pay your bills, you certainly can’t fix your credit. Real credit score repair will have to wait until your financial crisis has been solved and you have enough money to cover your ex-penses, plus some extra to begin paying down your debts.

Second, you can’t raise your scores if you don’t use credit. Credit scores try to predict how well you’re likely to use credit in the future by how well you’ve used it in the past. So while living a cash-only lifestyle may do wonders for your wallet, it won’t boost your scores.

How do I raise my credit score to 740?In our post-crisis economy, good credit isn’t just nice to have, it’s essential if you want to level the playing field with lenders.

Finally, you can’t expect overnight results. You’re likely to see improvement in your scores within 30 days if you pay down significant chunks of your credit card debt. But otherwise, credit repair takes time, and how much time depends on the many details of your credit reports. If you have serious black marks, such as bankruptcies or foreclosures, you can see significant improvement in your scores as time passes but you may have to wait until those negatives drop off your credit reports before you can join the 700-Plus Club.

Now that you understand the basics, you can use the following techniques to get your scores over 740. You have to nail the basics:

1. Patrol your credit reports. Your credit scores are based entirely on the information in your

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A newsletterfor WCCU Members

NewsCommunity

February 2012 issue

Feb Milestone Staff AnniversariesWCCU- Odds & Ends

- Mark Your Calendar -2/20/12- Closed for President’s Day

3/26/12- WCCU Annual Meeting- Tickets on sale now at all offices

Continued from Page 1.

Happy Anniversary to10 Years!- Cindy Burkholder- Member Service, Main Office

5 Years!- Rebecca Gwaltney- Marketing Manager

If building or rebuilding your Credit Score is a priority to you, WCCU can help. Get started

today by filling out a Take the Challenge Worksheet on our website,

www.westerlyccu.com or at our branches.

credit reports on file at the big three credit bureaus: Equi-fax, Experian & TransUnion. If the information is wrong, your credit scores could suffer. Dispute any serious errors.

2. Get a major credit card. Retail cards and gas cards can help you build your credit history initially, but to get your scores into 700-plus territory you’ll want at least one big kahuna: Visa, MasterCard, Discover or American Express. If you can’t qualify for a regular card, consider a secured version, for which you make a deposit with an issuing bank/credit union. Just make sure the card reports to all three bureaus, and try to get a card that converts to a regular credit card after 12 to 18 months of on-time payments.

3. Arrange automatic payments for every card or loan. Credit scores are extraordinarily sensitive to whether you pay your bills on time.

4. Don’t let disputes go to collections. If you let a commonplace problem like these escalate, your account will be turned over to collections and become a big black mark on your credit reports.

5. Pay down and spread out your debt. More than a third of your FICO score depends on how much of your available credit you’re using -- your so-called credit utili-zation. The FICO formula likes to see big gaps between your balances (whether you pay them off each month or not) and your limits, especially on credit cards. In short, it’s better to have small balances on several cards than a big balance on one card. Shoot for 10%.

6. Move debt to installment loans. If you’ve got high balances that you can’t pay down quickly, consider transferring the debt to a personal installment loan.

7. Move debt off your credit reports entirely. You can make debt seem to disappear by paying it off with a loan from a friend, family member or retirement plan, none of which typically show up on your credit reports. 8. Don’t close accounts or let them be closed. Closing accounts can’t help your scores and might hurt

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2 APR1.49%

them. If you’ve got cards you haven’t used in a while, take them out for dinner or a movie, and pay the balance promptly. Better yet, use them to charge a regular expense, such as your electric bill, and arrange for automatic payments.

9. Apply for credit sparingly. Applications for credit don’t ding your scores as much as some people fear; typically, you lose five points or less. But when every point counts, such as when you’re in the market for a mortgage or a car loan, you don’t want to squander any of your scores. Wait to apply for any other credit until you’ve secured the loan you want.

The lower your scores, the longer it will take to crawl your way back up the FICO scale. But progress is possible, & you can hit the 740 mark in time by using credit consistently & responsibly.

1Annual Percentage Rate (APR) as of 2/1/2012 and subject to change. Monthly payments per $1000 borrowed would depend on number of months chosen for car loan, for example: 60 months at $17.75. Use our loan calculators on our website to calculate yours. Rate shown is for members with an “A” credit score of 720 or above and an “active” checking account. (“Active” checking is 6 transactions or more per month and direct deposit.) If “active” checking account requirements are not met, discount will not apply. Refinancing for new loans only. Other rates and terms available. This Credit Union is federally-insured by the NCUA.