Your credit score can help you open doors to home ownership, the apartment of your dreams, a new car, and more. If you are looking to increase your credit score and don’t have a credit card, opening one could be the perfect solution for you.
About 10% of your credit is based on types of credit. If you only have one type of credit, it can lower your score, by adding a credit card you automatically add a secondary type of credit.
About 30% of your credit score is based on how much of your available credit you are using. If you only have a loan on your account that can affect your score. By adding a credit card and using less than 20% of your available credit each month you can increase your score.
About 35% of your credit score is determined by your payment history. Adding a credit card and always paying it off on time can add to your payment history increasing your score.
Here at Arbor we offer two types of credit cards.
Opening a credit card is a great step in taking control of your finances and can help you build your credit. Want to ensure that you are on the right track before opening your card? Read our article “5 Best Practices for Credit Card Use” Looking for even more ways to build your credit? View your credit score in Mobile & Online Banking and set your credit score goal and get personalized suggestions.