Your Credit Score Is Dropping: Do This Now to Save Thousands

Connor: KW3 Hey, it's Connor, talking about something that impacts just about everyone, credit. March is Credit Education Month, and Jessi from Numerica Credit Union is joining us.

Jessi: Thanks, Connor. This is such an important topic.

Connor: It really is. We've been seeing headlines about debt lately. I read that the average credit score in the United States has decreased over the past two years and that total credit card debt has reached about $1.2 trillion. That's a big number. A lot of people are feeling the pressure right now, whether it's rising costs, unexpected expenses, or just trying to catch up.

Jessi: That's why March being Credit Education Month matters. At Numerica, we want to offer practical tools and resources to help people improve their credit health.

Connor: So, how should people start?

Jessi: Start with a credit check-up. You have three credit reports - one with each credit reporting company: Equifax, TransUnion, and Experian. You can check all three reports for free once per year at annualcreditreport.com. And I really want to emphasize that is the only safe and free resource we recommend for your full credit reports. Don't Google "free credit report," because some of the first results can be scam sites that ask you to pay. Your reports are always free at the official site.

Connor: That's a great tip. Once someone has their report, what should they look for?

Jessi: Accuracy. Double-check your payment history, account balances, and personal information. If something isn't right, you'll want to file a dispute directly with the credit bureau to get it corrected. You can also monitor your credit score using free tools like Credit Karma, Credit Sesame, or Experian's website. Checking your own credit does not hurt your score. One thing to remember, though, there are more than 20 different credit scoring models out there. So, the score you see online might be slightly different than what a lender pulls. And if your score improves? That's a great time to talk to your insurance company about potentially lowering rates or ask lenders about refinancing options that could reduce your payments.

Connor: Let's say someone looks at their report and sees some negative marks. What should they do?

Jessi: First, remember that there's always a path forward. If you have late payments, focus on preventing future ones. Set up automatic payments or reminders. Over time, the impact of older late payments does lessen. And if you know you can't make a payment, reach out to your credit union immediately. Communication makes a big difference. If you have accounts in collections, contact the collection agency to confirm what you owe and discuss payoff options. Once you agree on terms, get everything in writing before making your first payment.

Connor: Some people feel really overwhelmed by debt. What support is available?

Jessi: If you're feeling stuck, you don't have to do this alone. Numerica offers free credit counseling and debt management plans. A Debt Management Plan can help people pay off credit card debt faster and potentially save thousands in interest. Credit counselors work directly with credit card companies to negotiate lower interest rates and more manageable payments. Last year alone, our members used debt management plans to pay off about $500,000 in credit card debt. That's a real impact for families in our community. You can find information on our website at numericacu.com by clicking "Financial Wellness," then "Advice and Counseling."

Connor: Such helpful information today. Any final thoughts?

Jessi: If you're looking at your credit score or your credit card balance and feeling overwhelmed, now is the time to act. Even small steps can make a big difference. At Numerica, we're here to help everyone in our community live well with their money. You can reach us at numericacu.com or find us on social media at numericacu. Just a quick note: this information is for educational purposes, and the examples we shared may not apply to every individual situation.

Connor: Love it. Jessi from Numerica Credit Union, thanks so much for stopping by and sharing.

Jessi: Thanks for having me, Connor!

Connor: Learn more about Credit at Numericacu.com