Home > What's New > Schedule of Events  > Press Releases

How to Improve Your Credit Score
Baylake Bank & ABA Offer Tips for Getting Better Loan Rates

The first step to acquiring the best mortgage or home equity rate is ensuring that you have a good credit history, which helps secure a lower interest rate and lower monthly payments. A person’s credit score is a key indicator, and more is better than less. A high credit score indicates strong creditworthiness, which qualifies a borrower for better interest rates on loans -- whether they are mortgage loans or credit card loans. To help ensure you maintain a good credit score, Baylake Bank and the American Bankers Association (ABA) advise that consumers:

-- Pay bills on time. Pay at least the minimum due, but paying more is even better. Payment history makes up 35 percent of a person’s credit score, according to www.myfico.com. The longer you pay your bills on time the better your score.

-- Watch for warning signs of credit trouble. If you pay only the minimum balance, pay late or use cash-advances to pay daily living expenses, you might be in the credit “danger zone.” For more information on debt management, contact the National Foundation for Consumer Credit at www.nfcc.org.

-- Evaluate your credit report annually. Your credit report illustrates your credit performance, so it needs to be accurate. Everyone is entitled to receive a free copy of their credit report through the Federal Trade Commission’s Web site at www.annuacreditreport.com, or call 1-877-322-8228.

-- Don’t skim; read the fine print. A loan or credit card application is a contract, so read it thoroughly before signing. Be aware of introductory rates that expire as well as the length of monthly billing cycles.

-- Ask questions. Remember that you are the customer and your lender is providing a service. If you don’t understand something, ask. It’s equally important to ask questions if you’re turned down for a loan. Find out why, and ask the lender how you can improve your chances for approval in the future.

-- Set a budget and stick to it. Developing a financial plan will help you keep your finances in order. Don’t spend more than you can afford, and don’t reach your credit limit or “max out” your cards.

-- Comparison shop; don’t jump at the first appealing offer. Compare rates and fees offered through mail solicitation, on the internet, or at your local financial institution.

Baylake Bank, serves Brown, Door, Green Lake, Kewaunee, Manitowoc, Outagamie, Waupaca, and Waushara Counties from 28 community financial centers, and from their website at www.baylake.com. Their comprehensive online WebCenter provides rate comparisons, calculators, online applications for home, refinancing, or construction loans, and more.

The American Bankers Association brings together all categories of banking institutions to best represent the interests of this rapidly changing industry. Its membership – which includes community, regional and money center banks and holding companies, as well as savings associations, trust companies and savings banks – makes ABA the largest banking trade association in the country.