Stronger Credit. Less Debt. More Freedom.
Gain financial stability by managing your credit and debt. Whether you're looking to improve your credit score, pay off debt, or protect yourself from fraud, the Financial Readiness Program (FRP) provides the resources and support you need.
Understanding Credit: Why It Matters
Your credit score affects your ability to rent or buy a home, your vehicle insurance and financing costs, and even your ability to qualify for certain jobs.
Lenders, insurance agents, and landlords use it to decide whether to approve your application and what terms to offer, so it makes sense to pay attention to it.
What Factors Make up Your Credit Score?
- Payment History (35%). Paying bills on time builds good credit, so consider setting up automatic payments whenever you can
- Credit Utilization (30%). Lower balances lead to higher scores
- Credit History Length (15%). The longer your history of responsible credit use, the higher your score
- New Credit Inquiries (10%). Applying for new credit creates hard inquiries, which can lower your score
- Credit Mix (10%). Not all credit is the same: installment loans for a house or vehicle are seen as more positive than charges for more-temporary items
Building and Improving Your Credit
You can improve a low credit score with smart financial habits.
Pay your bills on time, every time.
Set up autopay to avoid late fees
Reduce credit card balances
Develop a debt reduction plan to pay down or eliminate what you owe.
Avoid applying for unnecessary credit.
Applying for credit creates hard inquiries to your account and may lower your score
Feeling overwhelmed by debt? Struggling with credit issues? Our free financial counseling can help you:
- Create a personalized debt reduction plan
- Create a credit improvement plan to raise your credit score
- Work with creditors to reduce interest rates
- Avoid debt traps and financial pitfalls
Avoiding Common Debt Traps
Don’t get tripped up by these common set-ups:
- Using payday/title loans, cash advances, buy now/pay later schemes, and companies advertising “military loans.” These products often have extremely high fees and interest rates
- Minimum payments on debts. The faster you pay down your debt, the less interest you pay
- Co-signing loans for others. You're responsible if they don't pay
Additional Resources
More links, documents and tools for financial success
- Financial Frontline
- Office of Financial Readiness – Conduct a Financial Well Being Assessment
