Building and maintaining a healthy credit score for your financial security can be one of those adult aspects that is extremely difficult and somewhat confusing. Having a good credit score is very important to many aspects of your life - from buying a house, purchasing a new car, and securing financial loans. No matter how you beat around the bush often adults are not taught anything about credit scores and healthy credit during school. Leaving many adults confused on what healthy credit is, how it can be maintained, and what credit cards can be beneficial and harmful.

Kinetic Credit Union is here to address your concerns with credit scores in Columbus, GA. Here are several tips and suggestions we have for you while building your credit.

Credit Score Help Columbus GA

As an adult, you likely have encountered a life situation where someone asks to check your credit. There are many myths about credit and increasing your credit score, but building credit for a home or car purchase is necessary. From buying a new cellphone to getting a mortgage, credit reports and scores are used by businesses to evaluate your creditworthiness and establish your borrowing terms. No matter your reasoning for wanting to build your credit score, Kinetic Credit Union is here to assist you with your financial goals.

A good credit score can earn you many advantages in life: lower interest rates on lines of credit and loans, like auto and home loans; better insurance rates; lower security deposits on rentals, cell phone services, and new utilities; and even a stronger job application with employers who run a credit check. When searching for credit help in Columbus, GA don’t fall for scams. Choosing a financial institution like Kinetic Credit Union will not only help you with your credit health and goals but our financial knowledge comes from years of helping our members.

What is a Good Credit Score?

Credit scores are based on how you've managed debt in the past. Lenders use your score to establish the level of risk you pose as a borrower. If you have a long history of making on-time payments and managing debt responsibly, you likely have a good credit score and may have a better chance of getting approved for credit with favorable terms. If you don't have much experience with credit or have negative information such as late payments in your credit history, you may have difficulty being approved for a new account. And if you do get approved, you'll likely get less favorable terms. But what does “good credit score” even mean?

The most-used credit scoring models—FICO and VantageScore—use a range of 300 to 850. And here’s how that range breaks down:

  • Very poor: 300–579
  • Fair: 580–669
  •  Good: 670–739 
  • Very good: 740–799
  •  Exceptional: 800–850

Your credit score is made up of the following five components:

  • Payment history: 35% of your score
  • Current debt: 30% of your score 
  • Length of credit: 15% of your score 
  • New credit: 10% of your score 
  • Types of credit: 10% of your score


Build Healthy Credit with Kinetic

Building a good credit score can take time, but the benefits of doing so are numerous. Even if you don't expect to apply for credit anytime soon, it's important to start working on it now so you can build a good score for when you need it. Discussing your financial goals with a professional at Kinetic Credit Union will not only help you feel more assured in where you are in the present but also give you credit building confidence to make important decisions in the future.

If you are seeking help with credit score help or looking to maintain what you currently have - look no further. Contact one of our many local Kinetic Credit Union branches in the Columbus, Georgia area to set up an appointment to discuss your credit health and what financial options you have.

For more information on improving your credit score, check out Kinetic's Smart Steps Financial Education Program