May 17, 2021

How to Build or Repair Credit

Need to build or repair credit? Here are some recommendations.


If you’ve ever tried to get a loan or buy a house, you know how important a credit score is.

A credit score is a way for credit unions to understand risk. If you don’t have much credit, or if your credit score is low, lenders see you as a higher risk, which often translates to higher interest rates.

By understanding how to build credit or repair a low credit score, you can get lower interest rates and save money. You also open the possibility of borrowing greater amounts of money.

Your credit report is a makeup of the five following categories:

  1. Payment History – 35%
  2. Amounts Owed – 30%
  3. Length of Credit History – 15%
  4. New Credit – 10%
  5. Types of Credit Used – 10%

Building and/or repairing your credit does not have to be hard. In fact, it can be very simple.

Take these steps to establish good credit or help repair a bad credit score:

    • Pay bills on time
    • Establish savings
    • Maintain a positive balance history in your checking
    • Review your credit report with all three credit bureaus yearly: Equifax, Experian and Transunion
    • Dispute any errors on the report
    • Contact those debtors you owe and set up repayment plans on any unpaid debts
    • Open a secured credit card
    • Open a credit builder loan

Kelly Community Federal Credit Union is committed to helping you earn more, save more, and do more financially and we can help you work towards your goal of building and/or repairing your credit by offering you a Credit Builder/Credit Repair Loan.

Please ask one of our Financial Services Officers how you can get started today.


This week’s financial guidance comes from Ashley Wright, one of your certified financial counselors on staff here at Kelly Community.

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