Your credit shapes the life you’re building. Starting fresh? Rebuilding after a rough patch? Saving for a car, a home, or a major goal? Wherever you’re starting, now’s the time to clear old mistakes and open new opportunities.

Step 1: See Where You Stand

Before you can move forward, you have to know where you are. Your credit report holds the roadmap.

• Check Your Report for Free: Visit AnnualCreditReport.com to grab free reports from Equifax, Experian, and TransUnion. It’s quick, free to you once a year, and it’s your right.
• Find and Fix Mistakes: One in five reports has errors. Wrong balances, outdated addresses, even accounts that aren’t yours. Dispute them right away.
• Spot Trouble Patterns: High balances? Late payments? Knowing what’s dragging you down helps you plan your next move.

Pro Tip: Medical debt is a hidden credit killer. It makes up about 58% of all third-party collection accounts, according to the CFPB. If you find medical debt on your report, don’t ignore it. Reach out to settle or set up a payment plan. We’ll help connect you with resources that can guide you through it.

Step 2: Build Strong Habits That Open Doors

Credit isn’t just about fixing mistakes. It’s about building strength for the future. Strong habits help you earn better rates, bigger opportunities, and lower stress.

• Pay On Time: Your payment history matters most. One late payment can drop your score by 100+ points and stay on your report for up to seven years.
• Keep Balances Low: Using less than 30% of your credit limit helps your score. Under 10% looks even better to lenders.
• Keep Old Accounts Open: Credit histories get better with age. A longer history can boost your score and improve your chances of approval.
• Apply Carefully: Every new credit application dings your score by about five points. Hard inquiries stay on your report for two years but affect your score for about one year.

Step 3: Prep for Your Next Big Credit Move

Strong credit and smart planning help you get the best loan rates whether your looking for a new credit card, car or home loan.

First Credit Card:

• Start with a secured card. It’s a smart way to build credit if you’re starting from scratch.
• Keep your balance low. Use less than 30% of your limit and pay it off monthly.

Car Loan:

• Get pre-approved before you shop. It gives you leverage and better loan options.
• Make a strong down payment. It shrinks your monthly costs and lowers your risk of owing more than your car is worth later on.
• Consider GAP insurance. If your car is totaled, it pays the remaining loan balance after your standard insurance pays out the car’s current value, preventing you from owing money on a car you no longer have.

Mortgage:

• Check your credit early. Lenders look at all three credit reports and use your middle score to decide if you qualify, so clean up any issues months before you apply. If you are applying with co-applicant, some lenders may use the lower middle score of each applicant.
• Get pre-approved before you shop. It shows sellers you’re serious and helps you know what you can afford.
• Save for a down payment and closing costs. Starting early gives you more options and better loan terms.

Step 4: Don’t Fall for Credit Myths

Bad information can cost you real money.

Myth: Checking your credit hurts your score.

Fact: It doesn’t. Checking your credit is smart—and checking once a year is free.

Myth: You have to carry a balance to build credit.

Fact: Nope. Using your card and paying it off in full builds your credit. Carrying a balance can cost you if you are using more than 30% of your available balance.

Myth: Paying the minimum is enough.

Fact: Only paying the minimum traps you in debt and racks up interest for years to come.

Myth: Closing a credit card helps your score.

Fact: Closing cards often hurts your score by reducing your available credit and shortening your credit history.

Myth: You need perfect credit to get a loan.

Fact: You don’t need a perfect score. Lenders look for strong, responsible habits and work history. Not perfection.

Picture This

Imagine applying for a car loan, a mortgage, or a credit card and knowing you’re ready. Your credit is clean. Your habits are strong. You’re in control. You’re moving toward the life you want, not held back by old mistakes.

Your credit is a tool. When you clean it up, build it strong, and use it wisely, it can take you anywhere you want to go. You don’t have to figure it out alone. Frontwave Credit Union is here to guide you every step of the way.

Ready to Build Stronger Credit? Dream Big. We Got You.

No matter where you are on your credit journey, Frontwave Credit Union has your back.

Whether checking your first credit report, rebuilding after a few bumps, or reaching for your next big goal, we provide the tools, resources, and support to help you succeed. Make the most of your credit future with:

• 1-on-1 financial coaching helps you manage money, reduce stress, and plan ahead
• Credit-building tools like secured loans and credit cards
• Financial wellness webinars and workshops through GreenPath Financial
• Resources and support to guide you through every milestone

Let’s build your future together. Visit www.frontwavecu.com/truecare or stop by a branch to take the next step today.

Dream big. We got you.

About Frontwave Credit Union

Frontwave Credit Union is the trusted financial partner of TrueCare, providing smarter banking, real savings, and expert financial coaching. Employees and patients enjoy no-fee checking, great rates, and exclusive member perks that help you keep more of what you earn. Our 1-on-1 financial coaching offers personalized guidance to manage money, reduce financial stress, and plan for the future. With 24/7 mobile banking, 5,000+ shared branches, and 30,000+ fee-free ATMs, managing your finances has never been easier. To learn more, visit www.frontwavecu.com.