5 Ways Your Credit Union Can Help Fix Bad Credit

Posted on: 8 February 2022

Do you have damaged credit? No matter what created the problem — including careless spending, a messy divorce, or the high cost of living — a local credit union could be an excellent resource to help fix it. How? Here are a few ways that can benefit anyone. 

1. A Client Focus.

Unlike large banking chains and impersonal online institutions, credit unions have a customer focus at their core. They are member-owned and generally put more emphasis on community involvement and client benefits. This is perfect for someone who needs help righting their financial ship. Your credit union is more likely to work with you and find the right fit, no matter what. 

2. Lower Rates.

Credit unions offer some of the lowest interest rates across the spectrum of credit choices. Low-interest rates are vital when your credit has been damaged by high levels of debt that need to be paid off. The less money you spend on interest, the faster your principal balances come down — and the faster your credit score reflects it. 

3. Credit Rebuilding Options.

Rebuilding credit often begins with getting a little credit and starting a good history of timely payment and responsible use. But getting credit now can be difficult. Credit unions work with many people who suffer from credit challenges, so they often have programs designed to help you get low rate starter loans and secured credit lines so you can get off the ground. 

4. Local Availability.

Do you need some support as you tackle your debt or credit problems? Want help deciphering terms, rates, and fees? Then having live persons there to answer questions, provide direction, and explain policies increases accountability and success. No banking institution is more local and has easier in-person resources available than a locally-based community credit union. 

5. Tools and Education.

The best way to take charge of your own financial life is to educate yourself and use all available resources. Many local credit unions offer free workshops on subjects like smart credit use, FICO scores, investments, and financial goal-making. They may also offer online tools like debt and rate calculators, or targeted savings categories. Use these to fix current problems and avoid future ones. 

Want to know more about how credit union rates can help you tackle poor credit? Start by visiting your local credit union today and speaking with a customer service representative in person. With their support, you can beat your credit challenges and come out ahead. 


Money Management Tips for Parents

My wife and I both had very successful careers when we had our first child, so I never expected to struggle financially after we had her. Things were great for a while, although raising a child was a bit more expensive than we expected. Unfortunately, I ended up getting laid off from my job and that is when money got really tight for us. The silver lining was that we really saved on child care expenses while I was laid off. While I am finally now working again, raising a child on one income was a struggle and we learned many budgeting and money management tips and tricks along the way that helped keep us afloat financially. I decided to create a blog to share those tips with other parents in similar tough situations. I hope I can help you end your financial struggle!

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