« Return to "Blog"

On the Road to Building Credit with a Credit Union

Perhaps you may have had good credit in the past, but are now experiencing a much lower credit score due to choices or life circumstances. Or, you may be building your credit for the first time as a young adult or as a newly single adult. Whatever the reason, you can rely on MIT Federal Credit Union as your partner in building or reestablishing your credit.

Here’s how we can help you get your credit rating going in the right direction if you’re just starting out, or boost your credit rating at any time.

Credit builder loans – Check out this unique personal loan. We make a relatively small loan (between $500- $1,000) to you, and instead of providing you with cash or depositing the money into your checking account, we set up a special interest-bearing account with it instead.

You’ll make monthly payments to MIT Federal Credit Union until the amount of the loan is paid. You may not withdraw the pre-specified amount until your loan is paid in full. The funds plus earned dividends will then be released back to you. This is a great way to get started building or rebuilding your credit as a member!

Rent payment reporting – Make sure your rent payments are tracked and reported to Experian RentBureau, the only major credit reporting agency to include on-time rental payment data on its reports. Use of timely rent payments to build and boost credit scores is relatively new, and many people don’t know about it yet.

If you’re already leasing a home, or looking to find a suitable property to lease, ask your management company if your payments are reported to Experian RentBureau. And if you pay rent to an individual rather than a management company, you can still take advantage of a service that collects your rent payments electronically, pays your landlord and reports to Experian. It may be possible to include your excellent rent payment history, too.

Here’s the important thing to remember – To use your timely rent payment history for building or rebuilding your credit, you’ll need to be proactive about it. There are a handful of services that will collect, disburse and report for you, but of course, you’ll pay a small fee for the service each month. You must contact them to pay the small fee, but it can be a valuable investment in building your credit score, along with credit counseling, credit builder loans and secured credit cards from MIT Federal Credit Union.

Planning for a good credit rating is just as important as planning for major purchases and life transitions. The importance of a good credit rating means it can’t be an afterthought and it shouldn’t be left to chance.

You’ve decided to become a credit union member, and that’s a step in the right direction! Call MIT Federal Credit Union to discuss your credit score and options for improving it.

« Return to "Blog"