4 Tips to Help You Build Your Credit and Save


Build Credit

Did you know your NetCredit loan may help you build your credit history? That’s right; we are now reporting payment activity to major credit bureaus because we are committed to helping you achieve your long-term financial goals. Here’s what this new feature means for you and your credit.

Let’s start with some credit basics

Your credit score is a three-digit number that helps lenders gauge your riskiness as a borrower and how likely you are to miss payments. Lenders use credit scores to decide who to lend to, how much money to lend them, and what interest to charge. Keep in mind that you do not have just one credit score, since there are over 100 different credit scoring models used in the industry.

At NetCredit, we use VantageScore, which is a score developed jointly by the three major credit bureaus, Equifax, Experian, and TransUnion. The VantageScore ranges from 501 to 990, and higher scores mean better credit.

Another commonly used credit score is the FICO score, which ranges from 300 to 850. While we look at your broader financial picture—and not just your credit score—in considering your application, it’s still important to practice good credit habits and work towards improving your score.

Your credit is an asset

Your credit score is a valuable financial asset that can help you achieve your financial dreams, such as buying a home or starting a business. A poor credit score can cost you real money since many lenders give better credit terms and rates to borrowers with good credit scores. Over a lifetime, a person with fair to poor credit can expect to pay over $200,000 more than a person with good credit for the same products and services!

The impact of your credit score doesn’t stop there. Getting a cellphone could be a hassle if you have poor credit. Cell phone providers, utilities companies, and even landlords could use your credit score to ask for a higher security deposit. Your auto and homeowners insurance premiums could also be higher—up to 20% to 50% higher—if you have a poor score.

So taking steps to improve your credit score now could help you reap some serious savings over your lifetime.

Managing your NetCredit loan to improve your credit

Making on-time payments is really important in helping you build a strong credit score since payment history determines 35% of your FICO score.  With our new credit reporting feature, each full, on-time payment made on or after July 15, 2013 may help you build positive credit history…and ultimately help you reach your future financial dreams!

Here are some more tips to help you maximize the positive impact of payment history on your credit score:

  • Pay all of your bills on time. Making your of your payments on time is one of the biggest contributing factors to your credit score. Late payments and collections can have a major negative impact on your FICO score.
  • If you have missed payments, get current and stay current. The longer you pay your bills on time after being late, the more your FICO score should increase. Older credit problems count for less, so poor credit performance won’t haunt you forever.
  • Be aware that paying off a collection account will not remove it from your credit report. Late payments and collections will appear on your credit report for up to seven years.
  • If you are having trouble making ends meet, contact your lender or see a credit counselor. This won’t rebuild your credit score immediately, but the sooner you begin to manage your credit and make on-time payments, the better. Continuing this on-time payment should help your score improve over time. If you are having trouble with your NetCredit payments, don’t hesitate to reach out to us.

For more credit building tips, visit our previous blog post on this topic.



Jordhan Briggs is a content writer and copywriter at Enova International, Inc. dedicated to providing the most informative and useful content about living a rewarding life on a budget.