SALT LAKE CITY – While consumers continue to improve their personal balance sheets by paying off debt and saving more, recent reports also show consumer confidence is on the rise, as is consumer spending. In an effort to help its customers know where their credit stands, Wells Fargo & Company announced Thursday the launch of a pilot program in select states, including Utah.
The pilot program provides customers with no-obligation, complimentary access to their credit score and credit report. The score, which often costs upwards of $12, will also come with a copy of the customer’s credit report. Customers can take part in this program by obtaining a unique access code from their Wells Fargo banker through April 15.
“Since September 2011, the Federal Reserve Board has been reporting sustained increases in borrowing, which is an indicator that consumers are starting to make purchases they may have been putting off,” said Greg Winegardner, regional president for Wells Fargo in Utah. “We want to help our customers take charge of their credit because their credit profile affects their ability to borrow and the interest rates they’ll pay. And, lenders aren’t the only people who use credit scores to make decisions – many insurance companies, cell phone providers and landlords do, too.”
When reviewing credit applications, lenders review a borrower’s credit history, including their credit score. In addition, each lender has its own criteria for what level of risk it finds acceptable for a given credit product. There is no single minimum credit “cutoff score” used by all lenders, and there are many additional factors that lenders use to determine your actual interest rates.
“Taking charge of your credit means knowing where you stand today and knowing how to manage your credit profile,” Winegardner added. “Wells Fargo bankers are available to help customers review their score and report, and provide actionable tips to help manage their credit.”
Tips for better managing your credit score include:
- Establish your credit history. Don’t open a lot of new accounts in a short time frame. If you’ve been managing credit for a short time, rapid account buildup can look risky. Even if you have established credit, this may be a sign of increased risk.
- Stay current with your bills. Delinquent payments have a major negative impact on your credit score.
- Lower the amounts you owe. Keep your balances low on credit cards and other revolving credit. Pay off debt and don’t open new credit accounts you don’t need.