Building Credit Before 25: Smart Moves for a Strong Financial Future
Your credit score might not seem like a big deal right now, but trust us, it matters more than you think. Whether you're planning to rent your first apartment, get a car loan, or qualify for a great credit card, your credit score plays a big role. If you’re under 25, now is the perfect time to start building healthy credit habits that will benefit you for years to come.
Why Your Credit Score Matters
A credit score is a three-digit number that tells lenders how trustworthy you are with money. The higher your score, the more likely you are to get approved for loans and qualify for lower interest rates. Even employers and landlords may check your score!
5 Steps to Start (and Boost) Your Credit Score
1. Open a Credit Card And Use It Responsibly
Consider applying for a beginner-friendly credit card. Just be sure to pay off your balance in full each month and never miss a payment. Even small purchases can help build your score when paid on time.
2. Become an Authorized User
Ask a trusted family member if you can be added as an authorized user on their credit card. Their good credit habits can help improve your score while you learn the ropes.
3. Make On-Time Payments a Priority
Your payment history is the single biggest factor in your credit score. Use reminders or autopay to make sure you never miss a due date—whether it’s a credit card, loan, or even your phone bill.
4. Keep Credit Utilization Low
Try to use less than 30% of your available credit limit. For example, if your limit is $1,000, aim to carry no more than a $300 balance at a time.
5. Track Your Progress with Credit Score & More
ICCU members have access to Credit Score & More directly inside Online Banking. This free tool lets you check your score anytime, track changes, get personalized tips, and even see how certain financial decisions could affect your score. It’s your all-in-one hub for credit health—and it won’t hurt your score to use it!
Ready to Take Control of Your Credit?
Login to ICCU’s Online Banking and activate Credit Score & More today to start tracking and improving your score with confidence.