Durham, NC - Maintaining good credit is crucial, especially as banks tighten the reins on loans.

"With the credit crunch and foreclosures growing, creditors are looking closer at credit history and credit scores," said Scottie Dowdy, a financial counselor with Duke University Federal Credit Union.

The Duke Credit Union offers free workshops to help members dig out of debt and improve their credit score, a three-digit number lenders use to determine ability to repay a loan. The number, typically ranging from 300 to 850, is calculated based on payment history, available credit limits and total debt. The higher the number, the better.

The score affects what credit is available to borrowers and the terms (such as interest rates) that lenders offer.

"A low credit score could prevent you from getting a loan, while a strong credit history will usually allow you to get lower rates on car loans, mortgages, credit cards and insurance," Dowdy said during a recent workshop. "Plus, some landlords and employers also look at credit history, so negative information in your credit report could even prevent you from getting an apartment or a new job."

Learn more about credit scores at myfico.com.

BUILD A BETTER SCORE

• Get a copy of your credit report and file written disputes for any inaccuracies. To request a free annual credit report from each of the three national credit bureaus, Equifax, Experian and TransUnion, call (877) 322-8228, or visit annualcreditreport.com. "Keeping an eye on your credit report is also a good way to make sure the information on it is accurate and to help prevent identity theft," Dowdy said.

• Pay bills on time. "It might take a while to improve your score," said Dowdy, "but making timely payments is critical, even if it means asking lenders to adjust the due date."

• Lower credit card balances. "Keeping credit card balances near your credit limit has a negative impact on your credit score," she said. "It's important to bring down those balances."

• Cancel unused credit cards. "The available credit on those accounts could have a negative impact when potential creditors calculate your ability to repay a new loan," Dowdy said.

Go Online: To register for a seminar, visit dukefcu.org and select "seminar sign-up" under Quick Links; send e-mail to scottie.dowdy@duke.edu or call (919) 660-9745.