Have you ever looked at your credit report and can’t make heads or tails of what it all means? It may seem like an unpleasant chore, but it’s definitely worth your time to understand your credit rating. If you plan on making a major purchase, applying for a credit card, renewing insurance or looking for a new job, your credit report could be pulled as a determining factor in your quest.

Your credit report is a detailed history of credit inquiries and loans, including how many payments you've made and whether or not they were made on time. Loans on your credit report include everything from first and second mortgages, autos, major credit cards, and retail store credit cards. Your credit score, or FICO score (Fair Isaac Corporation) is the number attached to your credit report. FICO scores range from 300-850; the higher the score, the better. To qualify for the best interest rates on many Goldenwest consumer loans, borrowers need a credit score of 720 or higher.

We strongly encourage our members to audit their own credit reports annually to ensure there are no errors or potential fraud. The Fair and Accurate Credit Transactions Act (or FACT Act) of 2003 was enacted to help protect consumers from mistakes on their credit. As a result, the three credit bureaus, Equifax, Experian, and TransUnion are required to offer consumers a free credit report each year. In order to obtain your credit report, visit www.AnnualCreditReport.com or call 877-322-8228. It's important to note that you will be given a copy of your report, but not a FICO score. In order to obtain your FICO score, each company will charge a small fee. If you find something on your report that is inaccurate, you need to take action by contacting the credit bureau directly.

Tips For Raising Your Credit Score

Don't max out your credit cards. The rule of thumb is to use less than 50% of your available credit on individual cards as well as the total credit limit for all or your credit cards combined. For example, if you have two credit cards with a total of $10,000 in combined available credit, keep the combined balances below $5,000.

Avoid applying for too much credit. Are you tempted to apply for a credit card every time check out at a retail store just to get a perk or discount? Each time you apply for credit, your credit score can be lowered. Be choosey when it comes to your credit cards. Low rates and fees are just the beginning. Many credit card users earn great perks with programs such as Goldenwest's Visa Rewards Credit Card.

Make your payments on time. It may seem like a simple concept, but the consequences of a late payment when compared to an on-time payment can equate to hundreds or thousands of dollars in interest on a higher-rate loan. You can set up automatic payments at any Goldenwest branch, or using our free online bill pay service.

Stay alert to avoid credit cons. There are numerous scams claiming to quickly raise credit scores for a fee. However, the facts are it takes good financial practices over a considerable time period to raise a credit score.

Apply for a share-secure loan. Why? With a loan secured by your existing funds, there is no risk to the credit union, and therefore, requires no credit check or pre-qualifications. Making consistent, on-time payments to a share-secure loan can help to raise your credit score.

High credit scores are a win-win scenario for members and the credit union! If you need more information or advice to improve your credit score, contact our member service center or visit any Goldenwest branch to speak with our experienced loan officers. Click here to learn about our credit monitoring program, Fraud-Defender.