Healthy Credit Card Habits to Start Now [Checklist]

No matter how much experience you have with credit cards, our healthy credit card tips can help you take control of your finances and achieve your long-term goals! By handling credit cards correctly, you can establish credit, rebuild credit, or even consolidate your debt and save a lot of money depending on your unique situation. After you have reviewed our tips, if you have questions about your unique financial situation, or about which credit card may be best to help you gain financial freedom, please contact us. We're happy to help!

Healthy Credit Card Habits for Students and First-Time Credit Card Users [Checklist]

According to a recent Forbes report, more than 70 percent of students and other young adults have their own credit card before reaching 20 years old. The average member of Gen Z has about two credit cards before graduating from college. While credit card use can positively impact a young adult’s life and help build credit, it can also cause damage to their finances and credit score. Make sure you follow these tips to use a first credit card responsibly.

• Charge Within Your Means: One of the best strategies to stay ahead of credit card balances is to only charge what you can afford. That means charging the basic necessities you previously paid for with cash. By staying within your usual budget and paying off the full balance each month, you won’t incur unnecessary interest charges.
  
  
• Pay Early & Often: While responsible credit card usage is tied to on-time monthly payments, consider taking it a step further with your first credit card. Set up recurring payments within bill pay from your checking or savings account to the credit card twice per month. The two transfers will help satisfy the minimum, drive down the balance, and make it easier to zero out the card each month.
  
  
• Plan Credit Card Spending: When students and career-minded young adults don't have experience managing revolving lines of credit such as credit cards, they sometimes charge items better paid for with cash, check, or a direct withdrawal. The result tends to be overspending. By setting up a monthly budget that breaks down how expenses are paid and sets a limit on leisure spending, you’ll know when to use your first credit card and when to pass on a purchase.
  
  
• Monitor Credit Utilization: Learning how to use a credit card can come with some hard lessons. One involves how credit bureaus calculate your FICO score. Part of the formula looks at debt-to-credit ratios. This means how much of the available credit you're currently using against how much is available. By not canceling credit cards and using 30 percent or less of your available line, you can improve your credit score which potentially opens the door to better borrowing options at lower rates in the future.
  
  
• Set Up Notifications: Banking in the digital age offers first time credit card holders money management tools to help them stay on track. By using real-time transaction alerts, you can set up notifications when balances creep up or payments are due. This in turn can help you avoid damaged credit scores and overdraft penalties.
  
  
• Beware Unnecessary Fees: Another way first time credit card holders can save money is by avoiding unnecessary fees. The best first credit cards charge no annual fees and offer fee-free balance transfers and fee-free cash advances. While comparing fees, be sure to review the interest rate you can expect to pay if you're unable to pay off your balance each month.

Peach State Credit Cards Can Help You Achieve Your Goals

If you're looking for the perfect first credit card to begin building credit, Peach State has you covered. Our Student Platinum with Rewards Visa Credit Card is designed for students who are building their credit and still want to earn rewards as they spend. Our Platinum Visa Credit Card is another great option. While both options are meant for different lifestyles, both feature no annual fee, fee-free balance transfers, and fee-free cash advances.

For tips on finding the perfect credit card and the must-have perks you should be comparing, download our free guide: "The Best Credit Cards Always Offer These Hidden Benefits."

Healthy Credit Card Habits for Those Looking to Establish Credit [Checklist]

If you're looking to build credit from scratch, utilizing a credit card the right way can help. Following these credit card tips can help you build a healthy credit score and potentially save you thousands in interest payments when it comes time to purchase a new car or apply for a mortgage in the future. Here are some of the ways you can build a healthy credit score.

• Apply for Your First Credit Card: Be sure to consider student credit card and rewards credit card options. The best first credit cards charge no annual fees and offer fee-free balance transfers and fee-free cash advances. 
  
  Once you receive your first credit card, follow these tips:
  
  
  • Pay on time, every time.
  • Only charge what you can afford to pay off in full each month.
  • Set reminders to pay your bill on time.
  • Only use 30 percent or less of your available credit line. If for example, you have only one Student Credit Card with a $2,000 limit, avoid charging more than $600 within a given billing cycle. And always keep the balance of all your accounts under 30 percent.
  • Use real-time transaction alerts to set up notifications when balances creep up or payments are due.

• Consider Getting a Co-Signer: Increase your chances of getting approved for your credit card by adding a co-signer to your credit card application. The key difference between being an authorized credit card user and having someone co-sign involves repayment responsibility. When someone co-signs, the primary account holder is responsible for repayment. That person also receives the lion’s share of the reporting benefits. Co-signers only bear a burden if the credit card is not repaid in a timely manner.
  
  
• Become an Authorized User: If opening your own credit card isn’t an option, consider getting added to a family member’s credit card. This allows you to use the revolving line of credit and begin building your own credit. It’s a modest first step, largely because authorized users aren't typically responsible for repayment unless bills go unpaid.
  
  
• Limit Credit Card Applications: When trying to build a healthy credit score, it’s crucial to minimize how many credit card applications you submit. Each time a lender processes one, it results in what is known as a “hard pull.” This usually suppresses your credit score for upwards of three months. By conducting some due diligence and sitting down with someone from your local financial institution, you can maximize your success rate and improve your FICO score quickly.
  
  

Other Ways to Establish Credit:

• Have Expenses Reported: People who haven’t quite established a borrowing and repayment history with the credit bureaus often have accounts that can be quickly leveraged. For example, you can ask a landlord to report your rent payments. Expenses such as phone plans, utilities, and even child support payments can help establish a credit history.
  
  
• Consider Applying for a Share Secured Loan: While you should limit your loan applications when possible, a Share Secured Loan is great for first time borrowers, or those looking to repair or build credit. You can focus on making affordable monthly payments while funds are secured with deposits in a savings or share certificate account.  
  
  
• Apply for a Credit Builder Loan: Our Share Secured Credit Builder Loans are good for those who need to establish credit history and build their savings, or for those who simply need a fresh start. Funds are not required in your account to secure the loan. Loan proceeds are deposited to the account and frozen as security for the loan. Once the loan is paid in full, then the funds are released to you.

Peach State Credit Cards Can Help You Achieve Your Goals

If you're looking for the perfect credit card to help you build credit, Peach State has you covered. Our Student Platinum with Rewards Visa Credit Card is designed for students who want to build credit and still want to earn rewards as they spend. Our Platinum Visa Credit Card and Platinum A with Rewards Visa Credit Card are other great options to consider. While all options offer different perks, they all feature no annual fee, fee-free balance transfers, and fee-free cash advances.

For tips on finding the perfect credit card and the must-have perks you should be comparing, download our free guide: "The Best Credit Cards Always Offer These Hidden Benefits."

Healthy Credit Card Habits for Those Looking to Rebuild Credit [Checklist]

There are many reasons hard-working people struggle with poor credit scores. An economic setback may have resulted in missed payments, loan defaults, or unfortunate bankruptcy. Each one of these blemishes has a negative effect on your credit score, and some linger longer than others. But the good news is that there are things you can do even before these issues fall off your credit report. The following are tips on how to use a credit card to increase your credit score and build credit.

• Request Your Credit Report: It’s not unusual for the three major credit bureaus – Experian, Equifax, and TransUnion – to log reporting mistakes. By requesting a free copy of your credit report, you can review the documents and ask them in writing to fix any errors and omissions. Knowing what’s in the report also gives you an opportunity to pay off outstanding debts. Many people find this strategy can quickly improve their credit scores.
  
  
• Use an Existing Credit Card When Possible: Be sure to use an existing credit card to implement the remaining strategies below, but if you don't have a credit card yet and are looking for a credit card for bad credit, it may be best to apply for a low rate credit card with no annual fees and fee-free balance transfers. Combining your outstanding debt into one easy to manage debt consolidation loan with collateral will streamline your payments and simplify bill paying while you focus on building up your credit score.
  
  
• Work with a Co-Signer: If you're unable to get approved for a low rate credit card on your own, consider a co-signer. Having someone co-sign for a credit card could improve your chances of getting approved.
  
  
• Limit Credit Card and Loan Applications: When trying to rebuild a healthy credit score, it’s crucial to minimize how many credit card and loan applications you submit. Each time a lender processes one, it results in what is known as a “hard pull” which typically impacts your credit score.
  
  
• Use Your Card Consistently: Without spending more than you can pay off each month, find ways to make regular small charges. Setting up payment for one monthly streaming service using your credit card will demonstrate consistency and responsibility when you pay off the bill each month.
  
  
• Pay On Time, Every Time: Be sure your credit card payment is made before your bill’s due date each and every month. Set reminders on your phone or on your calendar to ensure you pay your credit card bill before it's due.
  
  
• Pay Your Bill in Full: When you pay off your credit card bill in full each and every month, you can build better credit than if you carry a balance because it helps to prevent you from getting too close to your credit limit. Plan to only charge items to your credit card that you can afford to pay off each month.
  
  
• Monitor Credit Utilization: Learning how to use a credit card can come with some hard lessons. One involves how credit bureaus calculate your credit score. Part of the formula looks at debt-to-credit ratios. This means how much of the available credit you're currently using against how much is available. By not canceling credit cards and using 30 percent or less of your available line, you can improve your credit score which could open the door to better borrowing options at lower rates in the future.
  
  
• Keep Going: Credit scores are based on your bill paying record over time. The longer you follow healthy credit card habits and pay your bills responsibly, the better your credit score will become.
  
  

Other Strategies to Rebuild Credit:

• Check Payment Reporting: It may very well be the case that you're making on-time payments to multiple parties and they're not being reported to the three major credit bureaus. Common monthly expenses that sometimes go unreported are apartment rent, phone plans, utilities, and even child support payments. Consider touching base with those who process these and other qualifying payments, and encourage them to send the information to the credit bureaus.
  
  
• Build Cash Reserves: Having cash on hand and not being able to qualify for low-interest loans due to a low credit score can be frustrating. Although debt-to-income ratios don't necessarily have the same weight as debt-to-credit utilization measures, cash can still be king. By building up checking, savings, and other account balances over time, you can demonstrate that you present a low borrowing risk.
  
  
• Consider Applying for a Share Secured Loan:  While you should limit your loan applications when possible, a Share Secured Loan is a great option for those looking to repair or build credit. You can focus on making affordable monthly payments while funds are secured with deposits in a savings or share certificate account. 

Peach State Credit Cards Can Help You Achieve Your Goals

If you're looking for the perfect credit card to help you rebuild your credit, Peach State has you covered. Our Share Secured Credit Card is another great option. If you're unsure of the best solution for your financial situation, please contact Peach State today.

For tips on finding the perfect credit card and the must-have perks you should be comparing, download our free guide: "The Best Credit Cards Always Offer These Hidden Benefits."

Healthy Credit Card Habits for Those Looking to Consolidate Credit Card Debt [Checklist]

Given the average American has four credit cards in addition to loans, debt consolidation and repayment strategies are critical in order to achieve financial freedom. Here are some tips for people looking to consolidate credit card debt, save money, and regain control of their finances.

• Understand Your Situation: If you're looking to consolidate your credit card debt, your spending strategy isn’t working. Take an honest look at your outstanding credit card debt and organize your bills so that you have a complete picture of your current financial situation. From there you can determine which debt reduction strategy will help you achieve financial freedom the fastest.
  
  
• Create a Budget: Create a budget to understand why you're unable to pay off your credit card bills in full each month. Limit your expenses and find ways to gain additional income to adjust your payments and budget for success.
  
  
• Use a Credit Card Pay Off Calculator: Using a Credit Card Pay Off Calculator can help you see what it will take to pay off your credit card balance and what you can change to meet your repayment goals.
  
  
• Utilize a Balance Transfer Credit Card: One of the most common solutions to credit card consolidation is finding the right balance transfer credit card. Most credit card types, such as a low rate credit card or rewards credit card, allow people to combine multiple debts into one streamlined payment. The best balance transfer credit cards offer low-interest, zero-interest introductory periods, and fee-free balance transfers. The goal of opening this type of credit card is to pay off all, or the majority of your debt within the zero-interest introductory period in order to save on the amount of interest you would have paid.
  
  
• Contact Your Creditors: Contacting your creditors and requesting an adjustment doesn’t hurt. Some may be willing to accept lower minimum monthly payments, waive fees, reduce your interest rate, or adjust your due date to help you get back on track.
  
  
• Don’t Cancel Your Credit Cards: It may feel good to take a pair of scissors and cut up unused credit cards. But truth be told, canceling accounts can exacerbate your debt-to-credit ratio and be counterintuitive to building credit. Unused credit can be a benefit when preparing to employ a debt-consolidation strategy. Resist that knee-jerk reaction to cancel your card and focus on other debt reduction strategies.
  
  
• Consider a Debt Reduction Strategy: You can get out of debt and Peach State is here to help! If you’re ready to organize and consolidate your existing debt using the common Debt Snowball Method, download our How to Get Out of Debt Fast Roadmap and Template to take the first step toward financial freedom!
  
  
• Credit Counseling: Peach State is committed to providing comprehensive money management education and counseling for our members. We do this with our financial education and resource partner, BALANCE. Learn more about Peach State’s free debt and budgeting counseling through BALANCE Financial Fitness.

Peach State Credit Cards Can Help You Achieve Your Goals

If you're looking for the perfect credit card to help you consolidate your existing debt, Peach State has you covered. Our Platinum Visa Credit Card is a great option that features no annual fee with fee-free balance transfers.

If you're unsure of the best solution for your financial situation, please contact Peach State today.

Peach State Is Here to Help

Managing credit cards the right way takes knowledge and consistency. Peach State is here and ready to offer you the information, tools, and tips you need to be successful! Using credit cards correctly can help you establish credit, rebuild credit, and consolidate your credit card debt, saving you money that would be otherwise spent on high interest.

If you're ready to apply for a low rate credit card, rewards credit card, or student credit card, Peach State offers a variety of cards to fit your life. Rest easy knowing that all Peach State credit cards offer fee-free balance transfers, fee-free cash advances, no annual fees, emergency card replacement, and real-time transaction alerts.

Not sure which credit card is best for your financial situation? Contact Peach State’s team of trusted experts. We're here to help!

For tips on finding the perfect credit card and the must-have perks you should be comparing, download our free guide: "The Best Credit Cards Always Offer These Hidden Benefits."