Credit plays an important role for most individuals and families. And like many Americans today, you may be just getting started or are working through past circumstances that prevented you from successfully managing your credit. Whatever the reason, there are some simple ways that can help you build a healthy credit profile.

Understand your debt. 
In order for you to obtain loan approvals and better interest rates in the future, you’ll have to prove you can handle your credit responsibly. Start by knowing how much you currently owe and create a simple plan of paying off as much debt as possible each month. 

Track your monthly budget and set financial goals that are specific, measurable, and achievable using a Personal Financial Manager tool like My Budget Manager.

Pay on time. 
Sounds so simple, but, this really is the easiest way to repair or build your credit. Paying all of your debts on time will keep your credit score from dropping. And this will help improve your credit score over time too.

Don’t close all of your accounts. 
Credit bureaus will look at zero balances on a credit card more favorably than an account that has been closed as open accounts show an established credit. So keep one or two credit card accounts open after you pay the balances off unless you are being charged a fee to have the card.

Save. 
Having money in a savings account will show creditors some financial stability on your part. Savings can sometimes be used as collateral when applying for some types of loans. Learn more about our Share Savings Accounts.

Replace bad credit with new habits. 
Once you begin to pay off some of your debt, it’s now time to throw away some of those bad habits you have been struggling with. Gone are the days of charging things you can’t afford. That means charging only what you can afford on your credit union debit or credit card. That will guarantee you are on the right track. 

Contributing Source: Credit Advisor