Why good credit matters — and how you can establish it easily.

Some people don’t understand the importance of good credit until they need it, and then discover they don’t have it. The truth is, having strong credit can influence your life by making it easier to get a car loan, an apartment, a mortgage, or job — and even help you qualify for lower rates on home mortgages and car loans.

If you haven’t already established a proven credit history, here’s how you can start.

Apply for a credit card. A regular unsecured credit card is preferable. But if you have an insufficient credit history to get one, consider a secured credit card, which requires a cash deposit in your credit union savings account that serves as your credit limit (allowing charges up to your deposit amount).

Make all your payments in full, and on time — consistently. Individuals who routinely pay their financial obligations as contractually required are more attractive to potential creditors. Even without a credit history, utility companies may allow you to establish an account in your own name, which can help you get credit.

Maintain a checking and savings account. Although these accounts don’t factor into your credit score, lenders can review them to see how fiscally responsible you are.

Establishing and maintaining excellent credit can lead to better financial health and more rewarding opportunities throughout your life.

Our Credit Builder Loan is a great way to start.

If you earn income but lack funds to make a deposit for a secured credit card, our Credit Builder Loan is an affordable, effective way to build and improve your credit score. Here’s how it works:

  • Borrow $500 for a 6-month term or $1,000 for a 12-month term at just 3.00% APR.* The loan proceeds go into your Allsteel savings account and are frozen.
  • As you make monthly payments, you gain access to the funds you’ve repaid and Allsteel reports your timely payments to the credit bureaus.
  • At the end of your term, you keep the remaining loan proceeds

*APR = Annual Percentage Rate. Payment example: $500 for six months at 3.00% APR is a payment of $84.06 a month.

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