BUILDING CREDIT

Building Credit: A Plan and Patience

• Understand how credit score works
  • Credit: Cornerstone Foundation’s Journey to Financial Wellness (developed by the Financial Well-Being Task Force) Managing Credit
• Monitor your credit score 
  
• Get a free copy of your credit report 
  • There are resources such as Experian App, Annualcreditreport.com, Credit Karma
• Apply for credit 
  • Visa Secured Credit Card: Credit card backed by a deposit that acts as your credit limit, making it easier to qualify while building credit.
  • Share-Secured Loan: a low-risk option where you can set aside savings as collateral and can help improve credit score and prepare for future borrowing.
  • Auto Loans: A loan to purchase or refinance a vehicle can help strengthen your credit profile.
  • Personal Loans: A loan with regular monthly payments can be used for various financial needs, while helping build payment history and diversify credit types.
• Use credit responsibly 
  • Your payment history is by far the biggest factor in your credit score. Even one late payment can hurt, so set reminders or automate your payments if you can.
  • Spending a small amount and paying it off in full each month is the sweet spot. Try to keep your balance below 30% of your limit (under 10% is even better).
• Tip: pick one or two regular bills (like your cellphone or a streaming service) that you know you’ll be able pay off every month, and set them up to autopay with your card. 

Credit Building Tips 

• Start Now: Get a Free Copy of Your Credit Report
• Apply for Low-Risk Accounts
• Use Your Credit Card—But Just a Little
• Always Pay On Time
• Be Patient and Consistent
• Ask for help when you need it - that's what we're here for!