4 Steps to Start Building Your Credit

Building your credit doesn’t have to be complicated. These four simple steps will help you get your credit on track. 


#1 – Open a credit card. 
The simplest way to begin building credit is to open a credit card. Take time to do your research and select a card that benefits you most. BHFCU offers three credit cards with a variety of unique perks.


#2 – Use your card for everyday purchases and pay it off immediately.
Plan to use your credit card for everyday purchases like groceries that you would otherwise use cash or debit to buy. These are items you can pay off immediately. Keeping your balance low and making on-time payments are essential.


#3 – Over time, ask for higher credit limits, but don’t spend to them.
As you build a history of low balances and on-time payments, request a higher credit limit from your financial. This higher dollar amount is not meant for spending. Having more available credit is a key factor in boosting your score.


#4 – Build a financial safety net.
Although not directly connected to building your credit, having a financial safety net in place can save you from unexpected expenses. Instead of having to put large amounts on your credit card should something come up, you will be set with cash on hand. The Money Management tool can help you get started.