Skip Navigation Documents in Portable Document Format (PDF) require Adobe Acrobat Reader 5.0 or higher to view,download Adobe® Acrobat Reader.
Ent Credit Union
Business and Paperwork header image

Types of Loans that Help Build Credit

The best uses of credit typically involve borrowing for things that: appreciate in value, generate future income or maintain their value once the loan or debt is paid off.

Don’t have any credit – or trying to build a more positive credit history? Consider these tips:

  • Consider starting with a store credit card. It’s often easier to get a store card than a bank or credit union’s credit card. Make sure to pay the card off each month as store cards often carry high interest rates.

  • Research the availability of a secured credit card. Secured cards require a deposit to the card company, and your credit limit is equal to the amount of the deposit. As with all cards, keep the balance low and make on-time payments for the most positive impact on your credit score.

  • Apply for a major credit card. Shop around to make sure you get the best card for your situation. Look for a card with a low interest rate and no annual fee. Don’t apply for more than one card at a time; applying for too many cards at once can negatively impact your credit score and decrease your chances of being approved for a card.

  • Finance a vehicle purchase. If you don’t have a good credit score or you have no credit history, consider having a cosigner. If you choose to have a cosigner – remember that making your payments on time (or not) impacts not only your credit score but your cosigner’s credit score as well, because they are equally responsible for your loan.

For more information, visit Savvy Money’s blog on Credit .