Preparing for a Prosperous Future

How To Use A Credit Card To Build Your Credit

Are you searching for ways to fix your credit score? If so, one option you might want to consider is getting a credit union credit card. Using a credit card properly can help you improve your credit score, especially when you combine this with other efforts. As you begin thinking about this option, here are some tips to help you use the credit card to build your credit score.

Apply for a Credit Union Credit Card

To follow this tip, you must get a credit union credit card. If you are ready to get one, you can look for a credit union that offers them. Once you find one, you can apply for the card. Many credit unions only offer services and products to their customers. If you are not part of a credit union, you might need to enroll in one that you qualify for before applying for the card. You can contact several credit unions if you have questions about membership.

Learn the Details of the Card

Once you get a credit union credit card, you will need to learn a few vital details about it. The first thing to learn is the interest rate. While you might not have to pay interest on the purchases, you should still know the rate. The second thing to learn is the credit limit. How much did the credit union approve for your balance? In some cases, credit cards have low limits, like $300. In other cases, you can get a credit card with a $50,000 balance. Finally, you might want to learn the monthly due dates, so you know when to pay the bills.

Start Using the Card and Automate Your Payments

Using your credit card is vital if you want to build your credit. You should aim to use at least 10% of the credit card's limit each month. Therefore, if you have a $1,000 credit limit, charge at least $100 each month. The final tip is the most important tip of all, which involves automating your payments. By automating your payments, you can pay the full balance every month by its due date. You will never have a late payment if you follow this last tip. 

Using a credit card like this can help you improve your credit score by offering a positive repayment history. Are you ready to get one from a credit union? Contact a credit union that offers credit union credit cards for more information.