Do You Really Need a Credit Card?

There is no doubt about it; credit cards have many negative stigmas attached to them.  But in order to achieve your financial goals you must establish good credit.  Over your lifetime you stand to save thousands of dollars if you start your credit out right - that comes from lower interest rates and better deals on credit cards, auto loans, mortgages, etc.  The first step to good credit is obtaining a credit card from a trusted financial institution. 

TEFCU is here to help you select the best card for you and stand by your side as you begin to reach your financial goals.  When deciding what card to apply for avoid being swayed by any freebies the companies are handing out.  Instead, note and compare the important features of each card, including:

• The annual percentage rate (APR). This is the interest that you are charged on any balance that you carry over, or do not pay off, each month.
• The grace period. A grace period is the number of days you have to pay off your balance before you are charged interest on your new purchases.
• The fees. These can include annual, late, and over-limit fees, as well as fees for not carrying a balance or using the card.

Which card has the lowest APR? Which ones do not charge annual fees? These features are more important than whatever gift you receive for applying.

We also suggest starting out small - request a limit that that works for you, maybe $500.  Then, start to use your credit card for purchases you would normally use your debit card for.  At the end of each week or so, pay off the credit card balance in full.  This way, you'll start to build your credit but keep it manageable - you never want to start charging recklessly and wind up with a bill you cannot afford.  Using your credit card responsibly isn't hard, but it does take an active effort by you.

Helpful Resources

We've partnered with BALANCE Financial Fitness Program to offer you free assistance and education.  They have a great tool called BalanceTrack available online!  If you're serious about establishing credit and getting your first TEFCU MasterCard, please take the Credit Matters Module at www.balancepro.net.  While you're there, check out all the other great modules that will help you reach your goals. 

No matter where you are on your life's journey, TEFCU can help you forge your own path.

Learn More:

Check out our MasterCard product overview ►

Get Started:

All you need to do is log into your account through e-Connect and select "Apply for a Loan" from the Loan Options Menu.