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There is no better feeling than knowing your credit is in check, but with prices rising everywhere, it may be harder to manage your credit card.  It doesn’t have to be scary, though!  If done with the right account and a good understanding, spending on a credit card can be more beneficial than you think. 

In 2022 it was estimated that 80% of Americans have and use credit cards. With roughly half of those people not being properly educated on credit card usage, it can leave a bad taste in some people’s minds.  So what better time to talk about credit tips than the New Year?

1. Transfer to a Low-Interest Card

One of the most important parts of credit card spending is working with a financial institution with a low-interest rate.  The average interest rate, according to Forbes, is 16%, so looking for a company with low-interest rates can be hard, not to mention stressful. That’s where First Community Credit Union comes in, with rates as low as 7.90% APR^*.

2. Paying Your Credit Card on Time

Paying your credit card on time is one of the most important things you can do. On-time payments account for 40% percent of your credit score, so making sure you pay at least the minimum is extremely important.

3. Check Your Credit Scores More Often

By using in-house credit score trackers, you can be assured that your credit score is accurate and up to date with the latest information that may impact your credit score, First Community Credit Union offers a free credit score service that is included in online banking that allows the member to freely check their credit score and what factors may be negatively affecting them.  By staying on top of your credit score, you can also stay on top of fraud, making sure that if there is a problem with your score, it is caught before it is too late and the damage is done.

4. Create a Personal Budget

Though this may seem like common sense, creating and sticking to a personal budget is one of the best steps you can take to keep your credit score on track. Sticking to a budget can prevent you from spending more than you can pay off in a timely manner.

5. Pay the Full Credit Card Balance

Though this may seem impossible for some, paying your full balance every month can help tremendously when it comes to high-interest rates.  By paying off your credit card in full each month, you will not be acquiring a high amount of interest!  It also reflects better on your credit score and allows you to build while spending. 

Credit Cards and spending on credit can seem scary, but with the right account, it can do more good than bad!  Spending responsibly with your credit card helps you build your credit score, and having a good credit score, makes you more likely to get a better loan rate down the road on something like a car or house.

Find more information on all our consumer credit cards here.

^*$1 share deposit required. Must qualify for membership. Federally insured by NCUA. Subject to credit approval. We do not charge interest on new purchases if you pay your entire balance each month by the payment due date.

Rates are accurate at the time of blog posting and are subject to change.