At Picatinny Federal Credit Union, we believe financial education is the key to long-term success. Your credit card can be a powerful financial tool that can greatly enhance your financial stability and open doors to new opportunities. Below are some healthy credit card habits that can keep you on the right track:
- Keep Your Credit Utilization Low: Credit utilization is the percentage of your available credit that you’re using, which can play a big role in your credit score. A good rule of thumb is to keep it below 30%. For example, if you have a $5,000 credit limit, aim to keep your balance under $1,500. Lower utilization can help improve your credit score and show lenders that you manage debt responsibly.
- Pay More Than the Minimum: try to pay more than the minimum to reduce interest costs and shorten your repayment time, this will help you avoid interest charges and keeps your debt from piling up
- Understand Your Interest Rate: Your credit card’s Annual Percentage Rate (APR) determines how much you’ll pay in interest. Did you know that PFCU’s APR is as low as 15.99% APR? That’s almost 15% less than other credit card companies, which means more savings for you! Knowing your APR can help you make informed decisions about paying down debt or transferring balances to lower-interest options.
- Pay Your Bills on Time: Your payment history accounts for a large portion of your credit score, making on-time payments crucial. Late payments can lead to fees, interest rate hikes, and a drop in your credit score. Set up autopay or reminders to ensure you never miss a due date.
- Take Advantage of our uChoose® Rewards: Many credit cards offer perks like cashback – be sure to understand and maximize our Premium Rewards Credit Card benefits such as redeeming your points for travel, gift cards, merchandise, Amazon purchases, and more!
Visit the link to learn how you can boost your credit score this April by opening a Premium Rewards Credit Card and getting 0% APR on purchases and balance transfers for the first 12 months.
