Money Mechanics Blog

Did you know the best time to start building credit is when you’re young? Your credit score will stick with you your entire adult life, so making smart decisions when you’re young will help make things easier when you’re older.

How does credit work, anyway?

The better your credit is, the more you can borrow, and the lower your interest rate. Your credit score is made up from a few factors – from making on-time payments on your credit card, to how long you’ve had your credit card, to even how much of your limit you spend each month.

The higher your credit score, the more likely you are to actually repay your loans, which makes lenders more likely to lend to you! You are also more likely to get a lower interest rate, which will save you money over the life of any loan.

Starting your credit journey

The easiest and most straightforward way to start building credit is by opening a credit card. The Allegius Visa Credit Card has no annual fee, and is a great choice for a first credit card.

When you get your card, be sure to make your payments on time, and don’t go crazy! Spending too much of your limit on your card each month can actually negatively affect your credit score.

Have you already gotten yourself in the weeds with your credit, and need help kicking some unhealthy habits? That’s okay! Check out this Money Mechanics Blog post all about fixing those bad habits.