4 Moves to Build Your Credit and Why it Matters

You may be focused on how many credits you need to graduate, but there’s another kind of credit to build up for your future success.

Your credit score is a rating of how likely you are to repay a loan, ranging from 300 to 850 (higher is better). Good credit helps you qualify for:

• better interest rates
• higher credit limits
• more housing opportunities

Why do those things matter? They can come into play when you’re thinking about:

• off-campus housing
• a first car
• internships and/or post-grad plans

Here are four moves you can make to keep your credit looking good:

1. Pay bills on time. This is critical to keep your credit rocking steady.
2. Don’t max out your card. We know how fun having a credit card is and the temptation to use it frequently. But, to ace our first tip, honor your budget and only spend what you can afford to pay each month.
3. Keep it low key. Open one card, use it for some small purchases, pay it off, repeat.
4. Go ahead – check your score. Checking your credit won’t effect your score and it will help you understand where you’re at. UW Credit Union members can access their credit score and full report, set automatic alerts for when things change and get recommendations on how to reach credit score goals for free anytime.

Remember, credit is a tool, not free money. Loans provide flexibility and increase your purchasing power, but they also come with interest that can quickly add up and effect your financial well-being if you don’t pay off balances in a timely manner.

Start small. You don’t need perfect credit today, but your habits and behaviors can help your future self have the credit score you’re aiming for.