A great credit score can help you get the best rates and offers on auto loans, cell phone contracts — even apartment leases. But when you turn 18, you don’t really have a score yet. An easy way to build one is to open a credit card (with a co-signer) and establish good spending habits. If used responsibly, you’ll be setting yourself up for financial independence in no time.
What is a credit score?
A credit score is the measure of your creditworthiness and reflects the likelihood of you paying back your debt to borrowers (like credit unions and banks) based on your credit history. It can range from 300 to 850. The higher the number, the more likely borrowers will be willing to lend you money.
How to properly use a credit card to increase or maintain a healthy credit score:
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Make timely payments
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- Always pay at least the minimum payment by the due date. Any amount not paid by the due date will accrue interest.
- Set up automatic payments or reminders so you don’t miss a payment.
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Keep balances low
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- Keep your credit utilization (how much in credit you already spent) below 30% of your total credit limit. For example, if you have a credit limit of $1,000 on your credit card, try to keep your spending below $300.
- Try to pay off your full balance every month. The balance reported to the credit bureau is the balance on your statement – to help your credit score, pay the payment or balance BEFORE the billing statement is generated.
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Maintain long-standing accounts
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- Closing established credit accounts could potentially affect your score.
- Keep older accounts open to help with your length of credit history and avoid jumping from one credit card to the next.
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Limit new credit applications
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- Every time you apply for a loan, it’s reported to a credit bureau and shows up on your credit report.
- Avoid submitting frequent credit card and loan applications.
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Monitor your credit report
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- Regularly check your credit report for errors or signs of fraud. See it for free in Velocity Online Banking.
- Use free resources like annualcreditreport.com for annual checks.
Velocity Credit Card Options
Now that you know the benefits and good habits needed for credit cards, take a look at our options:
Mastercard™
Platinum Rewards
Earn points toward rewards every time you make a purchase. If you plan to pay your full credit card balance every month, why not earn rewards, too?
- 0% intro rate for 12 months*
- Earn 1.5 points for every $1 purchase+ with our free CURewards program
- Redeem points online for CASH, dining, merchandise, gift cards (including Amazon®, Target® and dozens more), and travel rewards
- Enjoy all the other great benefits of our regular Platinum Mastercard™, including no annual fee
- Post-introductory rate of 16.50% to 18.00% APR*
Learn more about our rewards program here.
Cash advances and balance transfers do not earn Rewards points
Mastercard™
Platinum
No annual fee, and our lowest APR* when the intro rate period ends.
- 0% intro rate for 12 months*
- No annual fee
- No balance transfer fees for the first 12 months*
- Secure, contactless payment technology
- Post-introductory rate of 12.50% to 18.00% APR*
Important Credit Card Disclosures: English | Espanol
*DISCLAIMER: Intro rate for first twelve months, not available on savings-secured cards. After intro period, APR for Velocity Mastercard Platinum will range from 12.50% to 18.00% APR based on credit score and the Prime Rate; APR for Velocity Mastercard Platinum Rewards will range from 16.50% to 18.00% based on credit score and the Prime Rate.