Build Your Credit Score
Mel Barnes, SVP – Chief Operations Officer
Building credit can be a conundrum: How do you get a good credit card without a good credit score? If you are starting from scratch, it can be difficult to know where to start. If you already have a low score, raising it can take some time and money-conscious decisions. The good news? You don’t need a lot of money to have a good credit score. Just consider these three tips:
- Apply for a student credit card or a secured credit card. These cards are designed for people with little or no credit, so they’re easier to get. Student credit cards usually come with promotional offers or rewards—but they also come with lower credit limits and higher interest rates, so make sure you read the fine print. Secured credit cards require a cash deposit as insurance; if you miss a payment, they take your deposit. Try to find a card that does not have an annual fee.
- Set up auto pay. Have any rent, bills or other payments withdrawn from your account automatically. This way, you’ll never miss a payment. Just make sure to do it around a time of month, such as payday, when your account has enough money.
- Don’t maintain a balance on your credit card to pay the interest. Paying interest does not improve your credit score. Paying your entire balance, however, will save you money in the long run while simultaneously building your credit score.
Did you know that all of Oklahoma State Bank’s personal checking accounts come with free online bill pay? Check out the many personal banking solutions Oklahoma State Bank has to offer. Visit www.osbbank.com/personal for more details.