The Benefits of Improving Your Credit

Having good credit is essential to a healthy financial well-being. This is due mostly to the fact that obtaining loans is a necessary part of life, and the availability of these loans is based on having a good credit score. Having a good score will help you buy a car, purchase a home, get lower interest rates – even obtain certain jobs.

Building Your Credit

So, how do you build good credit? If you don’t have credit, one of the easiest ways to start is to open a credit card. Search around and find one that doesn’t have a service fee and has a lower APR. At TopLine, we not only offer credit cards with tons of features, but they also come with many perks! Both the Platinum and Platinum Rewards VISA cards are loaded with benefits:

  • Screenshot (301)Low variable APR based on your credit history
  • No annual fees
  • No over-the-limit fee
  • Free eStatements
  • Free online account access
  • Automatic payment options
  • Cash Advances
  • VISA’s Zero Liability Program
  • Worldwide travel and emergency assistance
  • Free auto rental collision damage waiver
  • Warranty Manager Service

Calculating Your Credit Score

If you already have credit, it is important to know where you stand. Before you request copies of your credit report, make sure you know how your FICO Score is calculated. That will help you understand how to read your reports and what each score means. Here is a breakdown of the ranges of credit and what they mean:

  • Excellent Credit: 750 +
  • Good Credit: 700-749
  • Fair Credit: 650-699
  • Poor Credit: 600-649
  • Bad Credit: Below 600

The steps to find your credit score are as follows:

  1. Obtain a credit report – you are able to have one free copy per year. Make sure that you get a credit report from each of the credit bureaus: TransUnion, Experian, and Equifax.
  2. Compare and contrast the reports to find any discrepancies.
  3. If you find some that are inaccurate, be sure to dispute them right away. The longer they remain on your credit report, the more they bring down your score.

Improving Your Credit

Whether your credit report looks to be in good shape or needs improvement, it is important to consistently stay on top of it. The two easiest ways to do that is to reduce the amount of debt you owe as fast as you can and to set up payment reminders so that you don’t default. One of the fastest ways to pay off debt is to use the Debt Snowball Method. People have paid off tens of thousands of dollars in the matter of a few years with this strategy. You can also check out consolidation options to make payments easier and to lower interest rates. At TopLine, we offer personal loans as a form of debt consolidation.

Extra tips for how to improve your credit can be found here.

There are many benefits of having a good credit score – it simply makes life easier. You will see the benefits of lower interest rates and more financial opportunities open up for you like never before – good credit opens doors. Don’t go another day not knowing where you stand or having a bad creditor further lower your score.

Financing A New Vehicle With TopLine Federal Credit Union

 

S (1)Looking to get a new vehicle? Is your old one just about to kick the bucket? Lucky for you, spring is right around the corner and with that auto sales are on the horizon.

Along with our stunningly low rates, we also offer a number of other incredible services that include:

At TopLine, we want to make it easy for you to get the best deal without the stress or pressure of purchasing a new or new-to-you car. So before you come in, here are three simple steps to make this process quick and easy.

Check your credit report
Request your credit report from one of the three credit bureau reporting agencies: Experian, Equifax, and TransUnion.Equifax Credit Information Services: 1-800-685-1111

For more information about credit reports, see:

Tip: This is a really good time to correct any inaccuracies that may have been reported those reports of . This can save you from losing a lot of money in the future and further damaging your credit score.

Shop around for the best rate
Make sure you are getting the best rate for you and your budget. Eight out of 10 car buyers finance at the dealership, according to the nonprofit Center for Responsible Lending. Though this option may seem more convenient, it may come at a cost and a higher rate. Contact TopLine at 763-391-9494 to get pre-approved or apply online.

Tip: “Credit union rates tend to be about 1-1.5% lower than banks,” Jim Hanson, vice president at the Credit Union National Association in Madison, Wisconsin.

Choose the shortest loan you can afford
Car prices continue to rise and with that loans have gotten longer. However, the longer term you have on your loan — though it may reduce your monthly payment — the higher your total cost will be when all is said and done. That’s because as each month passes, interest continues to accumulate, which adds up and in the end you could be paying thousands of dollars more than you thought.

To calculate and compare auto loans, click here.

Tip: Know your budget and what you CAN afford before you start the application process.

Bonus Tip 1: Limit your loan shopping to a two-week period
Every time you apply for a loan — whether you are approved or use it — your credit score may decline slightly and each time you re-apply for financing, it gets a little harder to get the best rate you deserve. So make sure you process all your applications within a two-week period to prevent an unnecessary credit score dip.

Bonus Tip 2: You can be pre-approved before you walk on the lot
At TopLine, we work with a number of reputable independent franchised auto dealerships representing all brands throughout the Twin Cities area. With these participating dealerships, you are able to fill out a form that details what type of vehicle you are looking for and the TopLine financing can be done prior to visiting the dealership! This eliminates the hassle and stress of financing at the dealership and waiting for hours for it to finalize, thus making the whole auto purchasing process less time consuming and stress free.

We are here to help you through the auto buying and financing process. We look forward to making it easy for you to purchase, finance or refinance your dream car! Contact us at 763-391-9494 or email Ask@TopLinecu.com.