5 Tips For Improving Your Credit Score
STATEN ISLAND, N.Y. -- Need a loan? Your credit score helps lenders determine whether you are eligible for a loan and, if so, the rate of interest you will pay.
The higher your credit score, the better the likelihood of paying a lower interest rate.To improve your score, Victory State Bank suggests following these tips from the Board of Governors of the Federal Reserve System:
1) Get copies of your credit report; then make sure information is correct.
Go to www.annualcreditreport.com. This is the only authorized online source for a free credit report. Under federal law, you can get a free report from each of the three national credit reporting companies every twelve months.
You can also call 877-322-8228 or complete the Annual Credit Report Request Form and mail it to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.
2) Pay your bills on time.
One of the most important things you can do to improve your credit score is pay your bills by the due date. You can set up automatic payments from your bank account to help you pay on time, but be sure you have enough money in your account to avoid overdraft fees.
3) Understand how your credit score is determined.
Your credit score is usually based on the answers to these questions:
Do you pay your bills on time?
What is your outstanding debt?
How long is your credit history?
4) Have you applied for new credit recently? If you have applied for too many new accounts recently, it may negatively affect your score.
However, if you request a copy of your own credit report, or if creditors are monitoring your account or looking at credit reports to make prescreened credit offers, these inquiries about your credit history are not counted as applications for credit.
5) How many and what types of credit accounts do you have?
Many credit-scoring models consider the number and type of credit accounts you have. A mix of installment loans and credit cards may improve your score. However, too many finance company accounts or credit cards might hurt your score.
About Victory State Bank:
VSB Bancorp, Inc. (NASDAQ: VSBN) is the one-bank holding company for Victory State Bank. As Staten Island, N.Y.’s only community-based commercial bank, Victory State Bank operates five full-service locations on the Island: The main office in the community of Great Kills, and branches in the communities of West Brighton, St. George, Dongan Hills and Rosebank. For additional information, Victory State Bank may be reached at 718-979-1100 or visited online at http://www.victorystatebank.com
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