Jun 06, 2022 / Credit

Are You Creditworthy? (Cringe)

Creditworthiness. It just might be the cringiest word in the entire financial dictionary. At the very least, it evokes feelings of unfair financial judgment—separating the haves from the have-nots and generally making a certain percentage of the population feel less than stellar about their current financial situation (nice going, big banks).

It’s an uncomfortable concept to say the least, but creditworthiness is the reality of the current financial landscape. Fortunately, there are a few things you can do to evaluate your creditworthiness (cringe) and rebuild your credit, and it starts with finding a financial partner that’s willing to treat you as a credit equal.

Find the Right Lender

Not every financial institution will treat you like just another number. In fact, some want to work with you, no matter your financial history. Some lenders take pride in approving loans and helping people get back on track to a brighter financial future.

Find a financial partner that won’t judge you for your past credit mistakes. The right lender will actively approve applicants of all credit types and treat you like an actual person, so you can find a loan that will help you rebuild your credit.

Bring Outstanding Bills Up to Date

Your payment history has a big impact on your overall credit score. In fact, it accounts for 35% of the total credit score calculation. If you have a history of late or missed payments, there’s a good chance your credit score isn’t “good enough” for many big banks.

Bring all outstanding accounts up to date and practice good payment habits moving forward. Pay at least the minimum amount on each of your credit accounts every payment period. It’s the single most important thing you can do to rebuild your credit score.

Use Credit Responsibly

Making purchases on credit and paying your bills on time is one of the best ways to build credit. If you already have credit accounts, bring your credit balances below 30% of your total credit limit—the ratio most financial experts suggest for building up your credit score.

Once you find a lender that’s right for you—make consistent payments on your credit cards, auto loans, personal loans, and other credit accounts. This one practice can help you keep your credit utilization rate low and show the credit bureaus that you’re responsible in staying on top of your payments.

If you’ve been deemed to be less than creditworthy (cringe again) by the financial powers that be, come to Utah First, where you can find a lender and a loan that will fit your unique financial situation. Apply online or meet with one of our friendly, non-judgy loan experts to get the ball rolling on your next loan.