Once you begin to establish credit, such as through loans or a credit card, you begin to take a big leap forward in achieving your financial goals. Building good credit will help you get those future loans to help you when you need them, like for your first home.

However, with great financial opportunity comes great financial responsibility, and like a new puppy, your credit is something you need to keep an eye on. Using your credit to help you snag those future big loans relies largely on your credit score.

Your credit score is something that is based on your financial payment history, on a scale from 350 to 850, with 850 being the gold medal of credit scores. Lenders or institutions where you apply for loans will use that number to determine the risk of approving you for a loan, and lending you the cash you need. If approved, your score can also affect the amount you are allowed to borrow and the interest rate you will have to pay.

Whether you are new to credit or are an experienced guru in keeping a good credit score. We have supplied you with some tips below to prepare you for the world of credit and to make you a little less nervous about managing your finances.

Take Care of Your Credit

The first step to managing your credit is to keep track of your spending, mainly concerning credit cards. Be sure to ask for receipts when making a transaction and review your monthly statements. If you happen to notice something not quite right, be sure to let us know.

Next, try your very best not to exceed your credit limit. Your available credit is how much you have on a line of credit or a credit card. Make sure you don’t spend more than this amount. For example, if you have a credit card with a $4,000 monthly limit and have already spent $1,000 that means you have $3,000 remaining on that credit card.  Spending more on that card than that $3,000 will cause you to be "over your limit" and this  can result in negative consequences.

The third step is to simply pay what you owe when you receive your statement. Always pay the minimum payment listed, but if you pay more than the minimum or the full balance, you will decrease your finance charges.

Being Right on Time

Making timely payments on your loan(s), credit card, and other payments, is the number one way to create good credit for yourself, making you stand out as low-risk to future lenders. Here are just a few quick tips to keep your payments timely:

• Stay Organized: Life gets busy. A good practice to keeping your payments organized is to place your bills in a place specifically for bills, and nothing else, so you don’t lose or forget about them.


• Payment Due Dates: Be sure to make your payments before the due dates and try to get in the habit of making your payments at least one week before the due date.


• Contact Info: If you are not signed up for Paperless Statements and you move to a new location, don’t forget to let us know so your statements go to your new address.

If you ever fall behind on a payment, contact us as soon as you can. As mentioned before, keeping a good credit score will set you up nicely when it comes to applying for loans in the future. We understand life can get crazy and we want to help you out. Follow the tips we have provided here and you'll be on the right track!