Your credit score could often determine your opportunities, so maintaining it should always be a top priority. When starting the journey to establish and build credit, there are two primary types of financial institutions people can choose from: credit unions and banks. When choosing between them, many people ask, Can a credit union help build credit scores? The short answer is yes. And we are here to demonstrate how.
At Camino Federal Credit Union, we have been serving the Montebello community since 1941. Our passion is helping our members create and maintain healthier relationships with their finances and build a bright financial future.
Are you interested in building your credit score to gain access to more opportunities? Learn how credit unions can help you do so in our blog.
Can a Credit Union Help Build Your Credit Score? Yes, And Here’s How.
Opening an account at a respectable credit union like Camino could help build and maintain good credit in several ways. From easier approval for credit-building financial products to lower rates and fewer fees, read on to learn how credit unions build credit:
Potentially Easier Approval for Credit-Building Products
An often overlooked benefit of joining a credit union is that approval can be easier for financial products. Easier approval can be an advantage for those wondering, Can a credit union help build credit?
Opening a credit card or taking out a loan could be essential to creating and building credit. But it can be a Catch-22: it can be hard to get credit if you don’t already have credit.
Lower Interest Rates & Fewer Fees
Interest rates and fees are also crucial for those asking themselves, Can a credit union help build credit? Credit unions can offer lower (and more flexible) rates and fewer fees than banks.
Lower rates help build your credit score by making it easier to stay on top of paying off debt. Credit unions typically charge fewer fees than traditional banks as well, which can also help save more money to stay on top of debt payments in the future.
Staying on top of payments is an important component of building credit. In fact, your payment history accounts for 35% of your credit score, which is a sizable percentage.
Open An Account at Camino to Start Building Credit
So, can a credit union help build credit? The answer is yes. Easier approval for credit-building products, lower interest rates, fewer fees, and automatic payments play a significant role in establishing and maintaining good credit. Reputable credit unions like Camino also offer dedicated resources to ensure members have tools for financial success.
To learn more, call us at 800-835-3400, or apply on our Open an Account page to put yourself on track for a bright financial future.