Building a Good Credit Score in Louisiana

Credit scores are critical calculations that have the power to open or close doors to many financial opportunities. From securing a mortgage for your dream home to financing a new car for your family, this three-digital number can greatly impact your financial future, especially if yours is low. So what is it and what factors impact your score?

Why Your Credit Score is Important

Your credit score, based on information from your credit reports, predicts how likely you are to pay your bills on time. Creditors and lenders use your score when deciding whether to approve you for credit, such as a loan or credit card and determine the cost of that credit.  

Credit scores range between 300 and 850 and are determined by five main factors: payment history (35%), accounts owed (30%), length of credit history (15%), new credit (10%) and types of credit in use (10%). Generally, a score of 700 or above is viewed as good, while a score of 800 or above is deemed excellent. 

Why does this matter? The higher your score, the more likely you’ll qualify for low interest rates, save money on car and homeowners insurance, access to rewards and more. So when your score is low, interest rates, the cost of insurance and overall financial stress rise.

Low Credit Scores Got You Down?

In 2023, Louisiana had the second-lowest average credit score in the country with a score of 690. Dealing with a low score can feel like drowning in a sea of debt and frustrations – but you’re not alone. 

At Louisiana USA Federal Credit Union, we’re committed to helping our members navigate the sometimes turbulent waters of credit – whether you’re looking to establish, rebuild or maintain your credit score, we have the life jacket to get you above the water.

How to Build a Good Credit Score With Louisiana USA

Start with Trust

Building a robust credit score begins by partnering with a financial institution you can trust. Louisiana USA Federal Credit Union has been that trusted partner for over 75 years, offering a member-driven experience that focuses on your financial well-being rather than profit. Our knowledgeable experts are always ready to help members of any age develop, establish and maintain their credit.

Credit Builder Loans

One of the most effective tools we offer is Credit Builder Loans. This short-term solution is designed specifically for members looking to improve their credit scores. Approved by the NCUA, these loans provide a safer alternative to predatory payday lending, offering a structured way to build credit responsibly.

Here’s how it works: We initially loan a small amount to members for a period of six months to a year. This helps establish installment credit, which is crucial for building a credit history. We recommend keeping the loan for the full term to lengthen your credit history. Subsequently, we issue a credit card with a small limit to improve your revolving credit. This dual approach ensures a balanced credit report and score.

After six to eight months of following this program, members typically see improvements in their credit scores. From there, we can increase limits or loan amounts as needed, adapting to your evolving financial landscape.

Personalized Guidance

At Louisiana USA, we do more than just offer loans and credit cards – we provide personalized guidance on how credit works and how to manage it effectively. Whether you’re a member with a high score but minimal credit history, or someone looking to recover from past financial missteps, our certified loan officers are equipped to tailor a plan specific to your needs.

Continuous Education and Support

We believe in empowering our members with knowledge and tools. From one-on-one consultations to educational resources about credit management, we ensure you have everything you need to succeed. Building, maintaining and understanding credit isn’t just about numbers – it’s about creating a secure financial future for you and your family.

Ready to take control of your credit score? Contact us today at Louisiana USA Federal Credit Union, where your financial health is our top priority. 

Let us help you lay a strong foundation of credit that supports all your goals in life. Join us and see why generations of Louisianians have trusted us to guide them through their financial journeys.