Improving your credit score is possible

Credit scores and loans no longer seem so daunting for the students who attended the Credit 101 class on Oct 10. At Governor State's request, members of Marquette Bank instructed students on everything from maintaining good credit to identity theft.

Nowadays, people are putting more and more money on plastic. In 2005, $400 billion were on credit cards in the United States, and that number has since doubled. This drastic growth is making it more and more important for people to have good credit.

"I think the most important thing for people to take away from this is that they can improve their credit score," said Marquette Financial Sales Representative Liz Kucharski. "Most people know they have bad credit and they just give up."

What is considered good credit has also changed over the past 7 years. In 2005, a good credit score was anything from a 500 to 600. Today, most banks won't even look at a score under 720.

"People have just been walking away from their homes, and the banks are stuck with houses that they don't need. Raising the required credit score helps minimize this risk," said Kucharski.

The class also learned that with employers now looking at credit scores, it is important to begin building your score now. Kucharski recommends having at least one credit card that you pay off once a month. "Use it for gas each month and then pay it right off," she suggests.

Banking Office Manager Barbara Langes suggests buying something small and making the payment right away. "If you don't use them, you're going to lose them," said Langes. Kucharski also recommends opening a department store card over a big company card like MasterCard or Visa.

But both Kucharski and Langes stressed the importance of making your payments and making them on time. "Always put something down," said Kucharski. "The worst thing to do is not make a payment."

And check your credit score annually at annualcreditreport.com. Improving your credit score takes time but it can be done, and you want to make sure that no mistakes appear on your credit record.