Whether you're just starting to build a credit history or you're working to improve your credit score, opening a savings account may help. That's because lenders see bank accounts as a sign of stability. Stability, in turn, helps them see you as a good credit risk, which helps make it easier for you to receive a credit card, apartment lease or auto loan—and the opportunity to improve your credit score.
In addition to opening a savings account, you can also improve your credit score by paying your bills on time and building a credit history filled with positive information. Some ways you can ensure your credit report helps lenders see you as a positive risk include:
- Review your report and dispute inaccuracies. You are entitled to receive a free credit report from each of the major credit reporting agencies once per year. Once you receive your report, review it for inaccurate information and make a formal request to have it corrected.
- Ask for negative information to be removed. If your credit report contains negative data, you may ask that the information be removed or adjusted by writing a "goodwill letter." Creditors are not obligated to remove information from your credit report unless the information is inaccurate. However, if the negative data on your report appears isolated in an otherwise good credit history, there may be room for negotiation.
- Practice good habits. Consistently making on-time payments for your rent, auto loan, mortgage, electricity bills and other expenses, as well as paying more than the minimum on your monthly credit card bill will help show potential creditors that, even if you haven't had the best credit in the past, you've changed your ways. Ally Bank is here to help make managing your money easier, no matter where you are in your financial journey.