#1: Checking your credit score will lower it.

This is the most common misconception when it comes to credit scores. A soft credit check will not affect your standing. It’s a great way to keep tabs on your score. Kind of like when you spot a spider lurking in the corner of your room. Seeing it might be UNpleasant, but it’s better than being surprised later when it comes back to bite you.

Pro-tip: There is some truth to this myth. A hard credit check will ding your score, usually by a few points. With these pulls, however, your approval is required so they’ll never sneak up on you.

#2: You need revolving debt to build credit.

A credit score reflects how you manage debt, but that doesn’t mean you have to drag out your payments to prove yourself. If you’re able to pay off your debt, why wait? UNnecessarily carrying a balance will not boost your score, but it will weigh you down in more ways than one.

#3: You’ll be blacklisted for having a bad score.

There’s not a giant, evil arachnid with a clipboard determined to punish you for your credit score, even if it feels that way. A low score signals that you could pose a higher risk for some employers, landlords or financial institutions, resulting in often frustrating results. However, it’s not a universal red flag, nor is there a blacklist.

#4: There’s a “correct” way to earn a perfect score.

Things would be easier if this were true. Beyond the generic advice of making timely payments, monitoring your score and maintaining a long credit history, there’s no one-size-fits all approach to landing a higher score. Everyone’s credit journey will look different. Community Choice offers a variety of credit-focused services. If you want to UNcover the best path forward for improving your score, set up a meeting with one of our UNbankers today.

Now that we’ve escaped the web of myths, check some of our other credit score content.

This blog is intended for educational purposes only. For details about specific products or services, see credit union for details. For questions about investments, please consult your financial advisor.

The Power of Paying on Time

Paying off your credit card on time every month may seem obvious, but not everyone understands just how important it is. Did you know that 35% of your credit score comes from payment history? Timely payments build credit and boost your credit score.

Life happens and sometimes you miss a payment or can’t pay in full. The best way to recover from this is to pay it off as soon as you can. The more late you are, the more it can hurt your credit score. Plus, credit card debt can add up quickly due to some cards’ high interest rates.

The lesson here: Only spend what you know you’ll have in order to pay off your credit card each month. Then watch those payments boost your credit score into higher territory!

 Credit Utilization Ratio

This may seem like a scary combination of words, but your credit utilization ratio is actually pretty simple!

Here’s an example for you: If you have a $5,000 line of credit on your credit card and you spend $5,000 with it every month, your credit utilization ratio is 100%. Of course, maxing out your credit card isn’t really recommended. Ideally, you want to stay beneath 30% of your credit maximum. So, in this example, you wouldn’t want to spend over $1,500 with your credit card each month (this is 30% of $5,000).

In a perfect world, some experts say it’s actually best to stay under 10% of your credit limit. Those with the highest credit scores often cite a low credit utilization ratio. Find what works best for you but keep 30% in mind if your goal is to improve your credit score.

Ready to Use a Credit Card to Help Your Credit Score?

Starting to improve your credit score can be as simple as the steps outlined above. Get a credit card, pay it off on-time, and keep your spending under 30% of your credit limit – you got this!

Ready to explore credit card options? The Community Choice Smart Card is a great starter card for building credit; the UNLimited Cash Card offers you just that in cash back rewards with 1.5% back on everything; and our Priority Plus Card is your go-to travel buddy with 3x points on travel purchases and more.

This blog is intended for educational purposes only. For details about specific products or services, see credit union for details. For questions about investments, please consult your financial advisor.

 Travel Cards: More Than Miles

A travel credit card rewards you with points or “miles” for your spending, usually even more for travel-related expenses. You can redeem these points for flights, hotel stays, or other perks.
What you might not know is that travel cards often offer many other benefits related to travel. For instance, a travel card could automatically qualify you for travel insurance.

Essentially, travel cards allow you to transform your everyday purchases into opportunities to enhance your traveling experience!

Travel Cards: There for You if Things Go South

No matter which direction you’re traveling, sometimes things go south—lost luggage, delayed flights, you name it. Did you know that a travel card typically covers hiccups like these? For instance, the Priority Plus card covers:

• • Lost Luggage – Has your luggage ever gone on an impromptu solo trip without you? It happens, but with Priority Plus on board, you’re covered. Buy your plane ticket with a travel card like Priority Plus, and if your stuff gets swiped or takes a detour without you, you may be eligible to receive reimbursement for your checked luggage or carry-on baggage and their contents. Certain terms, conditions and exclusions apply.
  • Trip Delays – Always feel prepared for UNexpected delays when you book your flight with your Priority Plus card. With Trip Delay coverage, you can receive up to $300 when you’re stuck for more than twelve hours due to a covered hazard.
  • Baggage Delays – Don’t fret if your checked bags are delayed or misdirected for more than four hours. You could be reimbursed for up to $300 for any essential purchases made while waiting for your luggage.

Ready to Try a Travel Card?

Check out the Priority Plus card from Community Choice! We offer 3x points on all travel purchases, 2x points on dining, and 1 point for everything else. Plus, you’ll get all of the benefits you just read about! Start planning your dream vacay today with Priority Plus, only from Community Choice.

This blog is intended for educational purposes only. For details about specific products or services, see credit union for details. For questions about investments, please consult your financial advisor.

Responsibility is Key

Say goodbye, adios, au revoir 👋 to the old stereotype of credit cards being debt traps. The biggest thing to remember when using a credit card: be responsible. It all comes down to accountability and mindful spending.

Once you’re in that responsible mindset, a credit card can work wonders for you! By making timely payments and staying within your credit limit, you can build a pretty impressive credit history. Start using a credit card responsibly and see how it can transform you into a financial rockstar. 🤘

It’s Raining Rewards!

Now that we’ve set the #1 rule of having a credit card (using it responsibly), let’s UNveil one of the best benefits of having a cash back card *drumroll, please* 🥁 …FREE MONEY. Yup, you’re basically getting paid to spend money!

A cash back card gives a percentage of your purchases back to you—the details of which depend on the specific card. For example, our UNLimited Cash card gives you 1.5% cash back on EVERY purchase.

Whether you’re stocking up on groceries 🍎, paying bills 🧾, or booking your dream vacay 🧳, you’ll be racking up those sweet cash rewards like a boss. Your cash back will start adding up faster than you’d think!

Bonus Benefits: Convenience & Security

By opting for a cash back credit card, you don’t just reap actual cash rewards. You also gain the convenience of this versatile payment method. Imagine the sheer joy of breezing through online purchases or swiping your card at your favorite store without a care in the world. Plus, traveling is always smooth sailing with your credit card on board. ⛵

Credit cards are also equipped with robust security measures, including enhanced encryption and tokenization technologies—fancy words, but important features! They basically mean that your card is extra protected thanks to advanced technology. Take that, fraudsters and scammers! Your transactions are locked up tighter than a jar of pickles. 🥒

Ready For a Cash Back Card?

There are many credit cards on the market with different tiers of cash back rewards. Be sure to check out our personal favorite: The UNLimited Cash card! Use it for UNLimited cappuccinos ☕, UNLimited puppies 🐶, UNLimited hot dogs 🌭. You get the idea.

With a cash back card, your financial forecast includes a 100% Chance of Raining Money. ☔

This blog is intended for educational purposes only. For details about specific products or services, see credit union for details. For questions about investments, please consult your financial advisor.