800-622-3631
Routing #: 314978543
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800-622-3631
Routing #: 314978543
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Upcoming Scheduled Maintenance: Rally Credit Union will be conducting essential system maintenance beginning on Tuesday, October 28, 2025 from 8:00 pm -9:00 pm. 

Secure Your Financial Future: Building Credit Safely

January 30, 2025
Est. Reading: 2 minutes

What is Credit and Why Do We Need It?

Credit is an agreement between a borrower and a lender, where the borrower agrees to repay the loan with interest at a later date. It also refers to a person's ability to repay their debts. Your credit report and scores tell lenders if you have good or bad credit. Credit plays a crucial role in various aspects of our lives, from purchasing a car to securing a mortgage.

Building Good Credit: The Basics

Unfortunately, not everyone starts with a high credit score of 800+. It takes effort and time to build. Here are some tips to get you started on your credit-building journey:

How to Build Your Credit Early

Starting early is the best way to establish a solid financial foundation before reaching milestones like buying your first car, applying for a mortgage, renting an apartment, or getting a loan. Good credit opens doors to lower interest rates and better loan terms, leading to lower monthly payments. Here are some key points to keep in mind:

  • Starting from Scratch: Beginning with a low or non-existent score can feel daunting, but it's a normal part of the journey.
  • Financial Responsibility: Being financially responsible is vital. Timely payments have a significant impact on your credit history.
  • Seeking Help: Having a mentor or someone to guide you on your credit-building journey can be beneficial. Becoming an authorized user on someone’s account or having a co-signer can boost your credit.
  • Setting Goals: Knowing your financial goals helps you stay motivated. Whether it’s buying a home, getting a loan for school, or starting a new business, a high credit score can help you achieve better interest rates.

Simple Tips to Build Your Credit

Building credit can seem overwhelming, but these simple tips can help you get started:

  • Become an authorized user on someone’s credit card who has great credit.
  • Open one credit card to start your building journey.
  • Apply for a loan.
  • Use a co-signer.
  • Create good credit habits.

Building credit is a journey that takes time, patience, and consistent effort. By starting early, staying financially responsible, and seeking guidance when needed, you can pave the way to a strong credit profile.

Learn more about how you can manage your credit score and spending within digital banking!

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