Rest Confident, Your Money is Safe and Secure at Kirtland Credit Union, a message from our President & CEO. Learn More

Mobile Check Deposit is Temporarily Unavailable. We apologize for the inconvenience.

All Kirtland CU branches and locations will be closed on Monday, February 16 in observance of Presidents’ Day.

If you may experience financial hardship related to the government shutdown, we’re here to help. Contact us at 1.800.880.5328 for assistance, and click here to see how we are standing with you.

If you are experiencing financial hardship related to the government shutdown, we’re here to help. Click here to see how we are standing with you.

Use caution if you receive a call, email, or text message that appears to be from Kirtland Credit Union. Don’t click on links or call phone numbers in unsolicited messages. Remember: We will NEVER ask for your online banking access codes, credentials or for you to transfer money.

Chat Temporarily Unavailable: We’re currently experiencing issues with our chat service in Digital Banking. For immediate assistance, please call us or visit your nearest branch. We apologize for the inconvenience.

Search

ROUTING NUMBER: 307070050

LOGIN/REGISTER

Welcome To The Insighter!

Explore the latest happenings at Kirtland CU and learn about important topics from around the financial world. Here’s your insight! To learn about retirements, investments and financial planning, check out Invested now.

Using a Credit Card Responsibly

By K-Staff

Facebook
LinkedIn

Credit cards can be a very useful part of your financial toolbox, providing helpful rewards with consistent use, as well as additional security for purchases compared to cash or debit cards.

However, it’s important to use your cards responsibly and not accumulate so much debt that you find yourself in trouble.

Here are some guidelines to follow to make sure you’re using your credit wisely:

Always pay your credit card bill on time

The most important factor in building your credit score is your payment history – it is responsible for approximately 35% of your FICO score – and making on-time payments is key in establishing a positive payment history.

Making late payments on your credit card can result in late fees and increases to your annual percentage rate (APR), which will also increase the amount of interest you have to pay on your balance.

You can avoid missing your payments by setting up automatic payments with a linked checking or savings account, or by setting up payment alerts if you want to make manual payments.

Keep your balances low

Setting a budget and avoiding impulse purchases can help you keep your balances in a range where you can pay the full amount each month. Being able to pay off your balance in full keeps your credit utilization ratio – the amount of credit you are using to the amount you have available – lower, which can help raise your credit score.

Pay more than the minimum

Making on-time payments is important for your credit history, but paying off your full balance as soon as possible will help you avoid unnecessary interest payments, as well as helping your credit score in the long run – the amount of money you owe on your loans (your credit utilization ratio) is approximately 30% of your FICO score.

Most credit experts advise keeping your credit utilization below 30 percent to maintain a good credit score, but if you can keep it lower, that can help your credit score even more.

Set up account alerts

Email or text message alerts can help you track your spending, prevent late payments, and mitigate fraud impact – and with our Kirtland CU VISA® card, you can set up transaction alerts for in-store and electronic transactions, as well as for specific merchant types. You can also be alerted for purchases that exceed a set limit per transaction or per month to keep your spending in check.

Take advantage of credit card rewards

Once you’ve established a track record of using your credit responsibly, you can take advantage of rewards that are offered by different cards. Some credit cards offer increased rewards for certain categories of purchases, so you can get more airline miles, points, or cash back when you use your cards for those transactions. Maximize your rewards, but do so responsibly – if you accumulate debt that carries over month-to-month, the rewards you receive aren’t likely to be greater than the interest you’ll have to pay on that debt.

Leverage multiple credit cards

Adding multiple credit cards to your wallet can help with your credit score as it increases your available credit to draw upon, which helps to lower your credit utilization ratio.

However, it can also impact your credit score negatively if you make too many applications at one time – it is recommended that you wait three to six months between credit card applications to avoid this outcome.

You may be tempted to close out your old credit cards that you don’t use as often as your primary cards, but it is usually better to keep them active when possible – having older, established lines of credit on your records keeps your length of credit history stay longer, which is another factor in improving your credit score. If you don’t want to use a certain card, consider freezing the card instead of cancelling it.

Sources:

https://www.capitalone.com/learn-grow/money-management/tips-using-credit-responsibly/

https://www.discover.com/credit-cards/card-smarts/use-a-credit-card-responsibly/

https://www.bankrate.com/credit-cards/advice/credit-card-tip/

https://www.experian.com/blogs/ask-experian/how-to-use-a-credit-card-responsibly/

Your New Digital Banking Experience Starts Now!

Improving your online banking and mobile experience.

Key Information
You Need to Know

Member Login

LOGIN

Not registered,
Click Here to Register

Credit Card Rewards Points

REDEEM NOW