Credit Reporting- Do you know how to establish good credit?

  • What is a credit score?

  • Why is it important to build good credit?

  • Review your credit report

183992957What is a credit score and how is it used?

Basically, a credit score is a number that helps financial institutions determine how likely you are to repay a debt. The higher the number, the better the score. Other companies such as insurance providers also use credit scores to help determine risk and price products.

Credit scores are based solely on credit history and don’t take into account things like job history, time at your address, education or marital status.

Your credit score is always fluctuating. Every time you apply for, make or miss a payment on a loan or credit card, you add another entry to your credit file. Any of these actions will affect your credit score. The key to having an excellent credit score is simply being responsible with your finances. Here are some basic guidelines to help you build and/or maintain a good credit score:

Build good credit Open an installment loan or VISA credit card with us. Maintain the account wisely and limit the number of times you apply for credit.

Make payments on time Past due payments affect your score in a negative way. A history of timely payments will definitely keep your score moving in the right direction.

Watch your limits Stay within the credit limit on your account. Typically, if you use more than 40% of your credit limit it will adversely affect your score.

Don’t transfer debt Opening accounts you don’t need will lead to higher debt. Too many open accounts may lower your score. The length of time accounts are open also affects your score.

Review your credit report

Take advantage of our FREE Credit Sense score and monitoring tool in MyBranch Online Banking.  Plus, each of the three credit reporting agencies offer a free credit report annually. Visit and request a copy every four months, each time pulling from a different agency.




Please note there is a lot of conflicting credit score information to be found. This is the basic information we feel is the key to building and maintaining good credit. For more information speak with a KEMBA representative.  Contact us to schedule a time for a FREE credit review.