Monday, July 11, 2011

Building Good Credit: Using Credit Cards Wisely

The ability to get a loan, mortgage, insurance, even a cell phone can be impacted by your credit score.  Your approval and your interest rates will also be affected by the quality of your credit.  Using a credit card wisely can help in managing your finances and building good credit.

Essential to building good credit is paying all your bills on time. It’s also wise to pay more than the minimum balance and whenever possible, pay off the entire balance.  Limiting the number of credit cards can also help avoid accumulating excessive credit card debt.

Paying credit card bills on time and avoiding too much debt accumulation are important steps to help develop and maintain a good credit score.  Your credit score, contained in your personal credit report, is one of the main factors lenders evaluate when you apply for a loan. Credit scores can also affect the cost of other goods and services, such as auto insurance. 

Keep in mind that credit cards can be dangerous.  It’s easy to over spend now because you get to pay later. With low minimum payments, there’s a risk of forgetting to pay off debt or letting it build up until it gets too high.  

“Often when people think of a credit card, they automatically think debt,” says Christine Shilling, Branch Manager with Community Financial Credit Union. “Credit cards don’t have to lead to debt. By managing your payments carefully, you can help build good credit rather than harm your credit.”

If you are interested in applying for a credit card or want to learn more about establishing good credit, Community Financial has great options available.  Stop by one of our branches or call us today (877) 937-2328.    


Posted by: Community Financial
Community Financial Members Federal Credit Union is a not-for-profit, full-service financial institution owned and governed by its membership.

1 comment:

  1. I'm always on the lookout for a great new rewards credit card, but it seems like Citi is the best one from this infographic: http://www.creditcardassist.com/blog/battle-of-the-rewards-credit-cards-infographic-10455/.

    ReplyDelete

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