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It’s no secret that without a good credit score you may not qualify for a car loan, a home mortgage, or a new credit card. However, it can be difficult to build up a good credit score. It typically takes years of making payments on time, and successfully applying for, receiving, and making payments on loans. It’s even more difficult if you’ve applied for bankruptcy, had problems making payments in the past, or if you are young. But with a secured credit card from State Employees Credit Union, anyone can work towards increasing their credit score.

A secured credit card functions much like a typical credit card: You use it to make purchases and each month you will receive a billing statement and be required to make payments toward the balance. However, it’s different from a typical credit card in that it doesn’t require you to qualify for the card based on your credit score.

When you open the account with State Employees Credit Union, you simultaneously open a savings account which contains the amount of money you would like to be available on the credit card – your credit limit, in other words. State Employees Credit Union then holds that money in the savings account to support the credit card, essentially providing the credit union with some security should you become unable to make payments. It also prevents the credit union from having to run a credit check or denying you based on your credit score.

Here are some tips for using your State Employees Credit Union secured credit card or any other credit card:

• Make your payment on or before your due date.
• If you’re able, pay a little more than the minimum balance each month. However, wait to pay the full amount. Because you’re trying to build credit, you need to show a steady and timely payment pattern.
• Information about your balance and payment pattern is reported to different credit bureaus, which then determine your credit score. Banks will then retrieve your credit score from the credit bureaus as they determine whether or not you qualify for a loan or credit card. If you make consistent payments, on time, for about six months to a year, and have about two years of steady employment, that will drastically improve your chances of getting approved for a loan.

A secure credit card with State Employees Credit Union will help you to start building non-existent credit or will help you improve previously damaged credit. This will open doors and provide you with buying power! There is nothing holding you back, so come visit us today and get your financial future on track!