A strong credit score opens doors: lower interest rates, better loan terms, and increased financial opportunities. Whether you're planning to buy your first home, finance a car, or start a business, building credit is a smart financial move.
At Red Canoe Credit Union, we’ve helped thousands of Washington and Oregon families improve their credit. This guide breaks down the essentials of what affects your score, how to build it, and how we can help.
Understanding how your credit score is calculated is the first step. These five factors make up your score:
Pay on time, every time. Late payments, collections, and bankruptcies have a big negative impact.
This is how much of your available credit you’re using. Lower is better. Try to stay below 30%, or even 10% for a top score.
The longer your accounts have been open (and in good standing), the better.
A variety of credit types like credit cards, auto loans, and student loans can show lenders you can handle different obligations.
Applying for new credit causes “hard inquiries,” which can slightly lower your score temporarily. Too many at once is a red flag.
These work like traditional credit cards but require a refundable deposit. For example, a $500 deposit gives you a $500 credit limit. Unlike prepaid cards, secured cards report to credit bureaus, so each on-time payment boosts your score.
Red Canoe's secured credit cards are ideal for:
Young adults starting their credit journey
Members rebuilding after financial setbacks
With Red Canoe’s Credit Builder Program, the loan amount is held in a savings account while you make payments. After the loan term ends, you get the money, and your on-time payments are reported to credit bureaus.
Since payment history has the biggest impact on your score, staying consistent is key.
Set Up Auto-Pay through Red Canoe’s online banking platform to cover at least minimum payments.
Use Payment Reminders from our Mobile App to get notified before due dates.
Create a Payment Calendar to align all your due dates so you can plan better.
Try Bi-Weekly Payments to pay down balances faster and never miss a due date.
The lower your utilization, the better your score.
If your credit limit is $1,000, try to keep your balance under $300, and under $100 for best results.
Pay balances before statement dates to reduce reported utilization.
Ask for credit limit increases without increasing your spending.
Spread balances across multiple cards instead of maxing one out.
Meet with a Financial Counselor at Red Canoe for personalized debt strategies.
Unless there’s a fee or spending temptation, keeping older accounts open helps your score.
Longer account history = better score.
More available credit = lower utilization.
Use old cards occasionally (like for a monthly subscription) and set up automatic payments so they stay active.
Applying for new credit isn’t bad, but be intentional about when and why you do it.
Hard Inquiries: When lenders check your credit for a loan or card application (can lower your score slightly).
Soft Inquiries: When you check your own score or get pre-qualified (no score impact).
Group loan applications (like for a car or mortgage) within a 14–45 day window. They count as one inquiry.
Avoid unnecessary retail cards just to save a few dollars.
Ask Red Canoe for soft-pull pre-qualifications before you apply.
Tracking your credit helps you catch issues early and see your progress.
AnnualCreditReport.com - Get one free report per bureau each year.
Weekly Reports (through 2025): Access your reports more often to stay on top of things.
Members with Red Canoe’s Premier Plus Checking get advanced monitoring:
Monthly credit score updates
Real-time credit change alerts
Identity theft protection
Personalized tips based on your credit activity
Strong credit is just one piece of the puzzle. Here are a few more healthy money habits to support your journey:
Set Savings Goals: Build an emergency fund so you don’t rely on credit in a crisis.
Stick to a Budget: Use Red Canoe’s planning tools to create a budget that fits your lifestyle.
Track Your Progress: Small wins like paying off a card or reaching a savings milestone are worth celebrating.
Improving your credit score takes time but it’s worth it. Whether you’re working toward your first car loan or preparing for homeownership, the steps you take now will pay off in the long run.
As your local credit union, we offer personalized guidance, practical tools, and a team that’s invested in your success. Stop by your nearest branch to speak with a Member Service Representative about your credit goals. We’ll help you:
Review your current credit standing
Choose the right tools (like secured cards or credit builder loans)
Create a custom credit-building plan
Let's build better credit together.
Visit redcanoecu.com or stop by your local branch to get started today.