Before you know how credit works, you might worry that 
you could get in excess debt if you over spend or don’t manage your credit cards properly. And you’d be right. However, avoiding credit is not the solution either. The fact is, it’s important to have a credit history established if you plan to buy a car, a home or apply for a business or personal loan later in life. When you apply for a credit card and use it responsibly, it’s a great way to build credit and build a positive credit history and credit score.
Once you get a credit card and use it, you build credit in a few ways. First, you show other lenders that you’re able to borrow money and pay it back in a timely manner, making other lenders more willing to lend to you. Second, you create a history of payments, and the more payments you make on time, the more your credit score increases. Finally, if you’re spending smart and paying your balance off monthly, using a credit card raises your credit-to-debt ratio, which really helps improve your credit score and shows future lenders that you use credit wisely.
Build credit with credit union credit cards
Without established credit, it’s difficult to get a loan for a new car or home, get approved for a rental home or even get a new job. Credit cards help you build credit, and while it’s smart to spend only what you can pay in full, they can be extremely helpful tools. When unexpected costs arise and you suddenly need to buy a new phone or repair your car, credit cards help you cover the costs upfront—just make sure to pay the balance off as soon as possible. Even better, using a credit card responsibly, making timely payments and paying off your bill quickly helps you build a positive credit history. Credit union credit cards are especially advantageous as credit unions can offer lower APR rates and fewer fees than traditional banks, saving you money.
When it’s time to get your San Diego Credit Card, let Mission Federal Credit Union help you apply for the right Credit Card for your needs. Whether you get a Mission Fed Preferred Platinum Card or a Mission Fed Preferred Platinum Rewards Card, you’ll enjoy the advantages of no annual fee, low rates and all the benefits offered with our Mastercard® Credit Cards. With eligible Credit Cards, you can also enroll in Mission Rewards, so whether you use your Credit Union Credit Cards online or in person, you can earn rewards for every qualifying purchase you make. Apply for a Credit Card online, over the phone at 800.500.6328 or make an appointment online to visit your local Mission Fed branch and learn how Mission Fed Credit Cards can help you build credit today.
The content provided in this blog consists of the opinions and ideas of the author alone and should be used for informational purposes only. Mission Federal Credit Union disclaims any liability for decisions you make based on the information provided. References to any specific commercial products, processes, or services, or the use of any trade, firm, or corporation name in this article by Mission Federal Credit Union is for the information and convenience of its readers and does not constitute endorsement, control or warranty by Mission Federal Credit Union.
