Credit and Debt
Balance paying now without owing too much later
Credit allows you to borrow money to pay for things now and pay that money back over time. Debt is the amount you owe. When used wisely, credit can help you reach financial and life goals, like buying a house or car. When misused, it can limit your choices and increase financial stress.
Credit and debt 101
Best practices
Here are some important credit and debt best practices that you can use in your daily life.
Pay on time, every time
Payment history has the biggest impact on your credit score and helps you avoid late fees, penalties, and higher interest.
Keep balances low
Using less than 30% of your available credit protects your credit score and shows lenders you can manage debt responsibly.
Borrow with a plan
Only use credit when you know exactly how and when you will pay it back.
Know your interest rates
High APRs make purchases cost much more over time, so always understand the true cost before borrowing.
Check your credit report yearly
Reviewing your report helps you catch errors, identity theft, and fraud early.
Tackle debt intentionally
Choosing a payoff strategy and making consistent payments reduces stress and saves money.
Don’t chase rewards
Points and cash back aren’t worth it if you’re carrying a balance or paying interest.
Term |
Definition |
|---|---|
APR (annual percentage rate) |
The yearly cost of borrowing money, including interest and some fees |
Balance transfer |
Moving debt from one card to another, often to get a lower interest rate |
Credit limit |
The maximum amount you can borrow on a credit account |
Credit score |
A number that shows how reliable you are as a borrower |
Credit freeze |
A security tool that blocks new credit from being opened in your name |
Credit card vs. debit card |
Debit uses your own money. Credit borrows money you must repay |
In arrears |
Behind on payments |
Overdraft / nonsufficient funds (NSF) |
Spending more than what’s in your account |
Debt |
Money you owe and must repay |
Additional resources
Connect with SECU
In person or virtual. Connect with us when it’s convenient for you.
VISIT THE VIRTUAL FINANCIAL CENTER
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Credit & debt FAQs
There are many factors that go into your credit score, including payment history and the amount of time your credit accounts have been opened and more.
Schedule a financial consultation with us to let us help you get started:
Oftentimes, yes. We strive to provide the financial assistance you need despite less-than-perfect credit history.
We offer cards for every wallet, whether you are already established or are just getting started.
Visit our credit card page or schedule a virtual or in-person appointment to learn which card is best for you.
If you have a higher credit score, lenders and investors will be more likely to provide lower interest rates and fees. If your credit history is good, investors will have more confidence in your ability to pay on time consistently.
The Federal Truth-in-Lending law requires that all financial institutions disclose the APR (annual percentage rate) when they advertise a rate. The APR is designed to present the actual cost of obtaining financing, by requiring that some, but not all, closing fees are included in the APR calculation. These fees in addition to the interest rate determine the estimated cost of financing over the full term of the loan.
Complete this application to apply for a credit card.
