Credit Education

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Maintaining good credit is important — it lets you secure financing for major life milestones. Stay on top of your credit score with our help!

What is Credit?

Credit is the amount of money you are able to borrow, usually to make purchases. A common way in which people are extended credit is via a loan. When you are loaned money, you are agreeing to accept money from the lender and to pay that money back according to specific terms and with interest. Principal is the usable amount of money from the lender. The interest is the additional amount of money you agree to pay back to the lender as a fee for the convenience of using their money, in other words, the cost of borrowing money.

The loan security agreement is a legal, binding document. If you adhere to the repayment terms of the loan, then that positive behavior has a positive influence on your overall credit rating. If you are late in making payments or you stop making payments then your credit rating will suffer and you may run other risks as a result. Properly used credit can be a very good thing. Improperly used credit can be a source of problems.

Good credit is a result of regular, on time payments. Having a good credit history makes it easier to borrow money. However, having a poor credit history makes it more difficult to borrow money.

Why is Credit Important?

Credit may be helpful to you as an immediate source of money in an emergency.

Credit allows you to pay for purchases over time rather than all at once.

Because of its inherent ability to extend payments for purchases over time, your credit enables you to make larger purchases that would otherwise be out of your reach if you were to rely exclusively on cash, i.e., purchases such as a car or a home.

Criteria for Credit:

Expect lenders to review the three C's to evaluate whether you qualify for a loan – capacity, capital, and character.

  • Capacity refers to your ability to meet your payment obligations. Lenders assess whether you have a sufficient source of ongoing revenue to pay your current bills and other debts plus meet the additional financial obligations related to the loan you seek.
  • Capital refers to your savings and other assets that may be used as collateral for a loan.
  • Character refers to your demonstrated behavior, specifically how good your history is of having paid bills or debts on time. The lender's primary source of information in this regard is your credit report.

FREE Annual Credit Report

You are entitled to a free annual credit report from any national consumer credit reporting agency by law. You are able to capture a glimpse of how creditors see you and protect your identity by keeping up with your credit report.

annualcreditreport.com

Dispute Credit Bureau Report:

For us to handle your dispute regarding your Pelican State Credit Union account(s), you must send* the following documents to the PO Box listed at the bottom:

  • A copy of the Pelican State Credit Union Credit Report Dispute Form
  • Credit Bureau Dispute Form
  • A detailed description of the item and why you feel it's inaccurate
  • The date of disputed information
  • The full Pelican State Credit Union account number in question
  • A copy of the credit report (from Equifax, TransUnion, or Experian) which reflects the disputed item
  • Any documentation you have, which supports your position

Please forward your dispute with the above documentation to:

Pelican State Credit Union
Attn: Member Solutions Department
P.O. Box 40088
Baton Rouge, La 70835

To submit your data electronically, please send it to cbrdisputes@pelicanstatecu.com.

Pelican State Credit Union reports credit information as of the end of the month within five business days thereafter. We report to the following three reporting agencies, who may take up to three weeks to update their records from the monthly data: Equifax, Experian, and TransUnion.

Pelican State Credit Union is only able to update credit information we have sent to the three credit reporting agencies.

*It's important you submit this information for us to be able to conduct a reasonable investigation. Without this information, your claim may not be processed and may be considered "frivolous and/or irrelevant" as definite in the Fair Credit Reporting Act. Additionally, it is helpful for you to confirm your address, so that Pelican State Credit Union can promptly send you notification of the results of our investigation. Please be aware that Pelican State Credit Union cannot request changes to your credit report if the results of our investigation indicate the information of the credit report is correct. Please allow 30 days for investigation results.

Other Useful Links

Experian Credit Bureau

TransUnion Credit Bureau

Equifax Credit Bureau