Credit cards, mortgages, and student loans are all examples of ways people access credit. Credit is an important tool that can help families reach financial goals and handle emergencies. People may use credit to make large purchases, like a car, or to invest in an asset, like a house. In order to achieve these goals, a person needs to have a strong credit history and credit score.
Ideas for Action
1. Pull their credit score.
Staff can help families access their credit score. Staff and families can discuss what their credit score means and how it might impact their future goals.
Start the Conversation
- "If you’d like, we can pull up your score together and look at it.”
- “What is your reaction to your credit score?”
Resources for Families
- Where can I get my credit score? (guide)
2. Determine their credit goals.
Staff can support families in developing credit-related goals. Asking open-ended questions, using reflective listening, and letting the family lead are techniques staff might use in goal-setting.
Start the Conversation
- “What will improving your credit get you?”
- “How does this relate to your other goals?”
Resources for Families
- Setting SMART Goals (worksheet)
3. Consider ways to manage or improve their credit score.
Staff can share information with families about ways to improve their credit score or build credit if they have no history. Some methods include:
- Opening a secured credit card
- Opening an unsecured credit card
- Taking out a credit-building loan
Start the Conversation
- "What ideas do you have to improve your credit score?
- “Would you like to look into strategies to raise your credit score together?”
Resources for Families
- Getting and Keeping a Good Credit History (worksheet)
- How can I improve my credit scores? (video)
- 3 Ways to Build Your Credit Score (video)
Learn More with These Resources
- Building Credit from Scratch (article)
Last Updated: September 7, 2023