Credit Cards (US)

How credit unions can help you build your credit score

If you're looking to establish or build your credit, a credit union is a place to start. Learn more about how they work and the benefits they offer!


Why a union card is a smart choice for building your credit

Credit Union
Build credit with a credit union. Source: Adobe Stock.

It’s no secret that having good credit is crucial. Find out by reading this post how credit unions can help you build credit.

A high credit score can help you get approved for a mortgage, a car loan, or even a job. But many people don’t know how to go about building their credit. 

If you are looking for ways to build your credit, a credit union card can help you.

Credit Report- Text on Clipboard with Office Supplies on Desk. 3d Rendering. Blurred Illustration.

The 5 Best Places to Find Your Credit Score Report

A good credit score allows you to get lower interest rates on loans, qualify for better loan terms, and can even help you purchase a home.

Unlike banks, credit unions are nonprofits and are, therefore, more focused on serving their members than making a profit.

As a result, they often have lower interest rates and fees, as well as better customer service. In addition, credit unions are typically more willing to work with members who have poor credit than banks. 

As a result, credit unions can be a great way to rebuild your credit score. 

How to get started with a credit union

credit unions help build credit
You can get a credit card with a credit union just like you’d do with a bank. Source: Freepik.

To become a member of a credit union, you must open an account and deposit money into it. You can usually do this online or in person at a credit union branch. 

Once you have an account, you can use the credit union’s services. For example, you can take out a loan or use the credit union’s ATMs.

Credit unions help members build credit because all financial activity is sent to credit bureaus.

This information is then used to calculate the credit scores that lenders use to determine whether or not to approve loan applications.

Also, if you have a credit card with a low credit limit, you can use it to make small purchases and then pay off the balance in full each month. 

This will show that you’re responsible with credit and help to boost your credit score.

Additionally, some credit unions offer programs that allow you to deposit money into a savings account and then use the funds to pay off your credit card balance. 

If you have a low credit score, you might not qualify for a standard card, but you can try to apply for a secured card.

A secured card is a type of credit card where you need to put down some money to use it.

That deposit will become the limit of the card. Using it responsibly, you can build credit and become eligible for other credit cards in the future.

Some of the secured cards available are:

  • Secured Visa Card from USF Federal Credit Union
  • Secured Visa Credit Card from America First Credit Union
  • Secured Credit Card from USC Credit Union

What credit score range do you need in order to qualify?

If you’re looking for a credit union card, you might be wondering what credit score you need to have in order to qualify.

Credit unions typically have lower credit requirements than traditional banks, so you don’t need as high of a credit score to be approved. 

In most cases, a score of 600 is the minimum to qualify for a credit union credit card. However, some credit unions will approve customers with lower scores on a case-by-case basis.

For example, Navy Federal Credit Union has a secured card option for customers with bad credit.

What are some of the benefits of joining in?

credit unions help build credit
Check the benefits of joining a credit union. Source: Freepik.

Joining a credit union can be an excellent opportunity to improve your financial standing. 

For one thing, the institution will report positively on your behalf with all three major bureaus—which could help you build up good credits quickly!

And because they’re often smaller than banks and have more empathy toward those who might not otherwise qualify for loans or savings accounts due to their low scores (or lack thereof).

Joining up may just save some money over time too. So if you’re considering joining a credit union, there are definitely some things to consider that could make it worth your while.

If you’re looking to build credit, check out some of these tips. 

A good way to start building your credit is by getting a secured credit card which is backed by a cash deposit that you make. 

If you know someone with a good credit card account, you can ask them to allow you to be an authorized user. If the other person has a good payment history, it will help improve your credit score.

You can also help your credit score by paying your bills on time, every time.

Utility bills like electricity, water, and gas can also be reported to the credit bureaus and will help to improve your score as long as you pay them on time. 

And lastly, don’t open too many new lines of credit at once, and don’t apply for multiple loans within a short period of time, as this will result in hard inquiries on your report, which can lower your score. 

By following these tips, you can begin to establish yourself and build a strong credit history that will help you down the road when you need it most.

It is important that you start to build your credit for the future.

Credit unions are just one way of building credit. Having good credit is important for your financial life. If you’re looking for a way to build your credit, a credit union card is a great option.

And the best part is that they can help you establish yourself and build a strong credit history. 

There are also other options to help you build credit. If you want more tips on this subject, read our following content on how a secured credit card can help you raise your credit score.

woman using secured credit card online purchase

Secured credit cards can help you build credit!

Using a secured credit card can help you raise your credit score. Read more to learn how they work, and discover the benefits of this type of financial product.

About the author  /  Vinicius Barbosa

Vinicius Barbosa is a writer of finance-related content on this portal. Graduated in Social Communication, he writes about everything that involves the world of finances, from credit card recommendations to investment tips, for readers who want to make better decisions when it comes time to spend their money or invest wisely.

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