Stepping into college life is like embarking on a new adventure. It's a time of independence, new experiences, and responsibilities. Among these new responsibilities, managing your finances stands out as a critical skill to master early on.
Building credit and opening a checking account are essential steps in this journey. Luckily, Arizona Financial Credit Union is here to help you navigate these waters smoothly.
Why building credit is important
Credit is more than just a number; it’s your financial reputation. Good credit can save you money by opening doors to better interest rates on loans and lower insurance premiums, and can even affect your ability to rent an apartment or get a job.
Here’s why building credit while you’re in college is a smart move:
- Establishing a credit history: The sooner you start building your credit, the longer your credit history will be. A longer credit history can positively impact your credit score.
- Financial independence: Good credit is essential for financial independence. It enables you to qualify for loans, credit cards, and mortgages with favorable terms.
- Emergency funds: Having a credit card can be a lifesaver in emergencies, providing you with access to funds when you need them most.
Steps to build your credit
- Open a credit card: Consider starting with a secured credit card, which requires a deposit that acts as your credit limit. We offer student-friendly credit cards designed to help you build credit responsibly.
- Use credit wisely: Charge small amounts to your credit card and pay off the balance in full each month. This shows lenders that you can manage credit responsibly. If you pay off a credit card, don’t close your account as that helps you build good credit over time. Closing your account can also negatively impact your credit score.
- Pay bills on time: Whether it’s your credit card bill, rent, or utilities, paying on time is crucial. Late payments can significantly damage your credit score.
- Monitor your credit score: Regularly check your credit report for errors and stay informed about your credit score. Our members can access their credit score for free through the online banking portal.
Opening a checking account with Arizona Financial
A checking account is a fundamental financial tool for managing your money. Here’s how to open a checking account with Arizona Financial:
- Choose the right account: We offer various checking account options, including accounts with no monthly service fees for teens and students.
- Gather required documents: You’ll need a valid ID (such as a driver’s license or passport), your Social Security number, and proof of college enrollment.
- Visit a branch or apply online: You can open an account by visiting a local branch or by applying online through our website. The process is straightforward and convenient.
- Set up direct deposit: Arrange to have your paycheck or financial aid directly deposited into your checking account. This ensures you have immediate access to your funds without waiting for checks to clear.
- Utilize online and mobile banking: Our online and mobile banking platforms make it easy to manage your account, pay bills, transfer funds, and deposit checks—all from the convenience of your smartphone or computer.
Benefits of banking with us
- No monthly service fee: As a student, you can enjoy free checking with no monthly service fee and no minimum balance requirements.
- Financial education: We offer resources and tools to help you understand and manage your finances better.
- Local branches and ATMs: With numerous branches and ATMs, accessing your money is easy and convenient.
- Member-focused service: As a member-owned credit union, we prioritize your financial well-being over profit.
Managing your finances effectively is a vital part of the college experience. Building credit and opening a free checking account with Arizona Financial Credit Union sets you on the path to financial success. By taking these steps now, you’ll be well-prepared for life after college, equipped with the financial tools and knowledge needed to thrive.
Embrace this exciting time, take control of your financial future, and let us be your trusted partner on this journey. Here’s to a bright and financially secure college life!
To find out which account is best for you, visit arizonafinancial.org/checking-account for more information.