Your young adult years are important in establishing a strong credit base. You may not see it now, but your current financial actions strongly affect your future.
What is a Credit Report and Score? Your credit report (also referred to as a FICO report) is your first, and lasting, impression on lenders. It’s a performance evaluation from previous and existing creditors. Your credit score is represented in a number from 300-850. The higher the number, the lower risk you are to lenders. Other people who may have access to your credit report are possible employers and landlords.
Credit history is broken down into these 5 areas, some weighing more heavily than others:

+ Payment history (35%): a review of how often your payments are on time, late, or missed. Consistently late and missed payments reflect poorly on your credit. + Accrued debt (30%): how much you owe compared to your credit limits. + Credit history length (15%): how long you’ve been establishing credit and how often you use it. The more amount of time you’ve had to build your credit, the more solid it may be. + New credit applications (10%): how often you request credit. Each time your credit report is viewed by a potential lender or creditor, it can count against your score, as it may appear you are applying for an abundance of credit. + Types of credit utilized (10%): evaluation of the variety of credit (credit cards, loans, etc.) The more diverse the better.

Everyone is entitled to a free credit report every 12 months. It is important to take advantage of this:

	so you know if you need to take steps to improve your credit.
	to check for any errors that may be negatively affecting your score, such as computer glitches, human error, or even identity theft.

Visit https://www.annualcreditreport.com to find out how to request your free credit score.

The three major credit bureaus in America are Equifax, Experian, and TransUnion. Visit these websites for more information on credit reports, services, and correcting errors:

www.equifax.com
www.experian.com
www.transunion.com
www.myfico.com

The Importance of Good Credit
Apartment living is fun for now, but someday you will want your own home. Taking out a mortgage is a big step, and having good credit will save you time and money. The better your credit, the lower your loan rates, resulting in more favorable monthly payments. Good credit is also helpful when taking out student loans, buying a new car, or starting up a new business.

10 Tips for Improving and Maintaining Your Credit
It doesn’t take long for debt to build up. Many young adults find themselves thousands of dollars in the hole without realizing it. As debt adds up, it may be harder to stay on top of paying your bills and your credit can be damaged. There are ways to mend the wounds in your FICO score and develop habits to keep it solid.

1.	Come on in! Stop by Abbey Credit Union and ask one of our friendly staff members for advice on seeking professional credit counseling.
2.	Call your creditor. If you are having trouble making payments, don’t ignore it. If you are straightforward, most companies will be willing to work with you to set up a payment plan to help you get back on your feet.
3.	Demonstrate diligence. Open a small account, such as a store credit card, and make on-time, in-full payments.
4.	Pay more than the minimum amount due on your existing cards. This will not only show responsibility, but also keep you from wasting money on interest.
5.	Get a co-signer. You may need a co-signer for certain loans until your credit is mended. Making sufficient and on-time payments for these loans will really help raise your score.
6.	Don’t hover.  Credit card debt that consistently stays near its limit reflects poorly on your report.
7.	Be cautious. Only apply for credit when you absolutely need it. The more times your credit history is viewed by lenders, the more it is counted against you.
8.	Don’t live off credit. It’s easy to feel like you’re living luxuriously with the simple swipe of a card, but it catches up to you before you know it.
9.	Purchase based on need. If you don’t need it, don’t buy it, at least until you get back on your feet and you’ve established a budget for yourself.
10.	Find FREE (or surprisingly cheap) fun things to do! Entertainment doesn’t always cost money. Explore your options: www.abbeycu.com/montgomery_county.html www.abbeycu.com/miami_county.html www.VisitMiamiCounty.org www.metroparks.org