North Alabama Educators Credit Union

7 NAECU.ORG NOT FOR PROFIT, NOT FOR CHARITY, BUT FOR SERVICE A GOOD CREDIT HISTORY BUILDS THE FOUNDATION FOR A HIGHER CREDIT SCORE. THESE TIPS CAN SET YOU ON A PATH TOWARD BETTER CREDIT. YOUR CREDIT SCORE is a number ranging from 300 to 850 that reflects the payment history shown in your credit report, the length of time you've had credit, and your ratio of debt to available credit. When you apply for a loan, sign up for insurance or new utility services, or rent an apartment, prospective lenders and landlords purchase your credit report and use the information in it to help make lending decisions, such as whether or not to approve your loan and at what interest rate. WHO'S KEEPING SCORE? The debt you owe on credit cards and in mortgage, car, and student loans, the number of credit cards in your name, and whether or not you pay your bills on time are all reflected in your credit score. Matters of public record, such as bankruptcies, lawsuits, and arrests, are also considered. The North Alabama Educators Credit Union recommends contacting the three major credit-reporting agencies—Equifax, Experian, and TransUnion—on a rotating basis every four months to maximize your free credit report reviews (see "It's Free—That's the Law!") and keep an eye out for credit report errors or fraudulent activity. Each time that you review your credit report, highlight any questionable information and compare those items with your own records. If you find an error, report it in writing to the creditor and reporting agency that issued the report and be sure to include any supporting documents, such as canceled checks or bank statements. CREDIT SCORE Pssss! Know wha?A GOOD CREDIT SCORE CAN HELP YOU HOOK UP CABLE TO YOUR TV, BUY A HOME, AND EVEN GET A JOB. DISCOVER HOW TO KEEP IT IN TIP-TOP SHAPE. 1 2 3 - Sk•'„ th Limi Maxed out credit cards can negatively affect your credit score, even if you pay your bills on time. By making monthly payments higher than the minimum payment, you can pay off debts quicker, save money on interest, and decrease your debt-to-income ratio. Even one late or missed payment can mean higher interest rates, late fees, and a negative impact on your credit score. If you're having trouble keeping track of bill payments, set up automatic payments through your free North Alabama Educators Credit Union Bill Payment Service. If you've filed for bankruptcy or have other items reflecting negatively on your credit score, don't get discouraged. Focus on rebuilding your credit, and remember, most negative items are eventually dropped from credit reports. Be patient. Make payments on time. Pay more than the minimum. IT'S FREETHAT'S THE LAW! THE FEDERAL FACT ACT OF 2003 ENTITLES YOU TO A FREE COPY OF YOUR CREDIT REPORT ANNUALLY. TO REQUEST A FREE COPY OF YOUR CREDIT REPORT FROM EACH OF THE THREE MAJOR CREDITREPORTING COMPANIES, VISIT ANNUALCREDITREPORT.COM OR CALL 877.322.8228. Decodin Your

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