Clean Up Your Credit Report
Your Credit Record
Fix Holiday Debt
Repairing Your Credit Record

Clean Up Your Credit Report
Planning a big purchase? Want the lowest possible interest rates? Turned down for credit? Here's how to clean up your report:

1. Pay on time. Late payments hurt your reputation. The longer your history of on-time payments, the better you look to creditors.
2. Use less of your available credit. It's a big factor in determining your "credit-ability". With credit cards, keep balances at 30 percent or less of the limits. This helps your score more than if you pay balances in full each month.
3. Pay down — or pay off — balances. Most detrimental is credit card debt. Start first by paying off the cards that are closest to their limits.
4. Check your limits. Your score might be artificially low if credit card issuers show lower-than-actual limits. Most will update this information quickly if you ask.
5. Build loyalty. Regular, long-term use of the same card improves your creditworthiness. Also rely on one lender for all your credit needs. People's Community Credit Union is your perfect choice.
6. Work with us. Need help getting out of debt? Or, cleaning up your credit report? Ask what we can do for you. It's your right — and your reputation!

It's your reputation — protect it.
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Your Credit Record
According to a 2004 survey, 79 percent of credit reports had mistakes. Twenty-five percent were serious. By regularly checking your credit report, you'll keep it clean. And, be able to borrow what you want, when you want. And remember, you have the right to a free credit report annually.

In addition to checking your report, the following behaviors will enhance your credit rating — and your ability to borrow:

• you own a home and have lived in it for years,
• you stay with your jobs,
• you keep balances in checking and savings, and
• you pay bills on time.

Take good care of — and build — your credit record. It not only defines you to others but defines what you can — and can't — do.
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Fix Holiday Debt

1. Pay off your highest-rate balances first. Rather than pay only the minimum each month on expensive credit card debt, pay more. Another option: Consolidate high-priced debt into a lower-rate loan. Or, use low-rate savings to pay off the debt. We can advise you.
2. Turn debt into savings. By lowering balances, you'll lower the interest you pay. Save the difference. When the debts are paid off, keep saving the interest. You'll eventually have more in savings than you had in debt.
3. Join Holiday Club. It helps you save throughout the year for holiday spending. Put away $50 a month, and you'll have $600 plus interest a year later.
4. Dream a little. What are your goals for the next three years? A new car? Another trip to Cancun? Write them down.
5. Set long-term goals. Now look further into the future. Perhaps you want to pay for your children's college education. Or, buy a new house. A basic financial goal for most people is a secure retirement. Decide what you want. Then use a financial advisor, software and/or online financial calculators to figure out what to save — and for how long. With payroll deduction, you can meet your goals.
6. Look for ways to cut spending. Include everything from avoiding ATM surcharges and meals out to refinancing costly debt.
7. Be patient. It takes time to pay off bills. But by converting debt into savings — and savings into dreams — you can do it.

Don't let holiday debt ruin your holidays.
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Repairing Your Credit Record
Been denied credit? These five steps will help repair your credit record:

1. Investigate. Find out why you were denied credit. Perhaps your income isn't sufficient. Or, you haven't been in your job long enough. Time will solve these problems. You also might apply at different places, including here. Just don't open up too many new accounts too quickly.
2. Correct errors. If rejected because of an inaccurate report, ask the credit bureau for a copy of your file. Then write a letter explaining why you think the information is wrong. False information must be corrected. Still disagree with the report? Write your side of the story and have it attached to your file. Remember: You can't change negative information that's accurate. Bankruptcies can be reported for ten years; other facts, seven years. Don't be misled by those promising to repair your credit record. Only you can do that.
3. Deal with debts. If you can't repay on time, immediately contact creditors. Perhaps you can pay smaller amounts for a longer period of time. Don't wait until accounts are given to debt collectors. By then, creditors already have given up on you. If you do work out debt-repayment plans, make sure creditors report payments as timely. Otherwise, the credit bureau assumes you're delinquent.
4. Get low-cost help. Can't resolve credit problems by yourself? Talk to us. We can refer you to a nonprofit counseling service.
5. Change habits. While repairing your record, avoid new debt. When you do borrow again, pay loans on time. Start saving regularly - using payroll deduction at People's Community Credit Union. Saving improves your credit record.

Take charge of your credit record — you'll be glad you did.
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