Credit Building Basics

Your credit score can play an important role in determining not only how much credit certain lenders will extend to you, but also your interest rate, term limits, and other conditions. Unfortunately, there’s no quick, cheap way to magically build or fix your credit.

Instead, here’s some helpful tips to start building your score up.

1. Start with an AFCU secured Visa Credit Card. If you’re just getting started on your credit journey, it may be beneficial to apply for a secured credit card. A secured card works just like a regular credit card, except you’ll have to secure a deposit for the limit of the card as an act of good faith. Make purchases, pay the balance, and build credit.
2. Apply with a co-signer. Some lenders may be hesitant to do business if you have limited or poor credit history. Applying with a co-signer can help get your foot in the door. That being said, remember a co-signer is equally responsible for repayment of the loan, so only co-sign with someone that you have a stable, long term relationship with like a partner or family member.
3. Keep an eye out for better rates to refinance or transfer balances. If you’ve already started your credit journey with a credit card or auto loan and you have been making consistent, on-time payments, it may be worthwhile to refinance your auto loan or transfer your credit card balance onto a different card. This can help lower your monthly payment, and/or reduce the amount of interest you’ll pay in total.

Published April 1, 2025