Credit Basics

Credit scores range from 300-850 and act as a snapshot of your borrowing history. Higher scores reflect better borrowing habits, which lenders reward with lower interest rates on the money that you borrow.

Factors that affect your score as payment history, capacity for credit (or how much you owe), types of credit (such as credit cards or installment loans), the length of your credit history, and how often you apply for new credit.

 
 

Keys to building a great Credit Score:

  • Make all payments on time

  • When possible, use less than 30% of your credit limit

  • Pay off all debt

  • Only open new credit accounts when needed

  • Ask your credit union all your questions about building credit

Elements to know about your credit card:

  • Annual Percentage Rate (APR): This shows you how much interest you will be charged on your credit card’s balance.

  • Statement Date: The last day of the month’s billing cycle. All of the activity on your card during the statement period will be put together for your credit card bill on the statement (closing) date.

  • Grace period: The time after a statement period ends until a payment must be made.

  • Due Date: The last day that a payment can be submitted for the previous statement period.

  • Late fees: Charges that may be applied if a payment is submitted after the due date.

  • Minimum Payment: The minimum payment you need to pay on your card each month, if there is a balance on your card.