Credit education is our top priority and commitment.   

part 1: why is credit important?

---

How credit works: credit card basics
Credit is borrowing money to buy something today, knowing that you will have to pay it back later, usually with interest.  When used correctly, it can help you maintain financial flexibility and build your credit.  

Each month, you have to pay at least the minimum on your credit card statement, but you can pay more.  If you don't pay back all of the balance every month, you'll be charged interest, which is a small percentage of the balance. 

How you pay your bills and manage your credit affects your credit history and impacts your ability to get other types of credit in the future.  And remember, debit and prepaid cards do not help you build your credit. 

There are many reason to build good credit...

MAKES GOOD SENSE
Good credit often lowers your interest rate.  That means that borrowing money can be less expensive overall.

HELPS IN EMERGENCIES
When you build a positive credit history, you can use credit to get the things you need and want all by yourself. 

FINANCIAL POSSIBILITIES
Show that you can use credit wisely, and when the time comes to buy a car or a house or to start your own business, you'll have more opportunities to borrow money.

WHEN SHOULD I START?
Building credit is a journey that takes time, so it's best to start sooner rather than later.  Carefully managing your first credit card or loan teaches you how to be financially responsible and helps build a positive credit history.  And it can help set the stage so that you can finance the things you need and want later. 

WHERE SHOULD I START?
You may already be building your credit history now.  Your credit card and loan payments are reported, so remember to always pay them on time!  Debits cards and prepaid cards aren't reported, so they don't help you build credit. 

Common credit terms you should know...

BALANCE
​A Balance is how much you owe on a revolving credit account, like a credit card.  Try to keep this as low as you can, and avoid carrying a balance greater than 30% of the the credit limit.

CREDIT LIMIT
​This is the total amount you can borrow on revolving credit accounts like credit cards

CREDIT REPORT
​Your credit report is a comprehensive and detailed list of the history of your credit usage.  It's viewed by lenders and other businesses to gauge how good you are with money. 

CREDIT SCORE
​A credit score is a number that summarizes your credit history, and is calculated by taking into account many factors from your credit report.

INTEREST RATE 
​This is the percentage charged on any unpaid part of your balance.  The lower the number, the better.

MINIMUM MONTHLY PAYMENT
​The minimum dollar amount that must be paid each month to keep your revolving credit account in good standing. 

NEXT UP: HOW DO I GET CREDIT? >

---