Category Archives: Credit Management and Credit Cards

Things That Surprisingly Don’t Hurt Your Credit Score

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When it comes to credit scores, there’s a lot of misinformation floating around. It’s common to worry that one wrong financial move will instantly damage your credit, but the reality is that not every action affects your score the way you might think.

Understanding what does and does not impact your credit score can help you make more informed financial decisions and avoid unnecessary stress. Here are some things that surprisingly do not hurt your credit score.

Checking Your Own Credit Score

One of the biggest credit myths is that checking your own score will lower it. Fortunately, that is not true. When you check your own credit, it’s considered a soft inquiry – which does not affect your score. In fact, regularly monitoring your credit can be a smart financial habit because it allows you to catch potential errors or signs of identity theft early.

You can access your free annual credit report at AnnualCreditReport.com.

Paying a Bill a Few Days Late

Life gets busy, and occasionally paying a bill a few days late may not hurt your credit score as much as people fear. In most cases, lenders do not report late payments to credit bureaus until they are at least 30 days past due.

That said, even if your credit score is not immediately affected – you could still face late fees or penalties depending on the lender. Setting up automatic payments or payment reminders can help you stay on track and avoid both fees and potential credit damage in the future.

Getting Denied for a Loan or Credit Card

Being denied for a loan or credit card can feel discouraging, but the denial itself does not hurt your credit score. In reality, lenders do not report denied applications as negative marks on your credit report. What may cause a small temporary dip is the hard inquiry that occurs when a lender reviews your credit application. However, a single hard inquiry usually has only a minor impact on most consumers.

If you are denied, it may simply mean the lender’s requirements did not align with your current financial situation. Reviewing the reason for the denial can actually help you better understand your finances and identify areas to improve before applying again in the future. Check out our recent article on this topic to learn more.

Paying Off a Loan

Paying off a loan is generally a positive financial accomplishment, even if your credit score temporarily changes afterward. In some cases, you may notice a small dip in your score after fully paying off a car or personal loan. This usually happens because your credit mix or average account age changes, and does not mean paying off debt is bad for your credit. Over time, responsible borrowing and on-time payments continue to support strong credit health.

Having Student Loans

Simply having student loans does not automatically hurt your credit score. In fact, installment loans such as student loans can help diversify your credit mix. The key factor is how the loans are managed. Making payments on time and keeping accounts in good standing can positively impact your credit over time. Missed payments, however, may negatively affect your score.

Closing a Checking or Savings Account

Closing a checking or savings account generally does not affect your credit score because deposit accounts are not typically included in standard credit reports. However, if an account is closed with unpaid fees or a negative balance, that situation could potentially impact your credit. Before closing any account, make sure all transactions and balances are fully resolved.

Shopping Around for Certain Loans

Many people avoid comparing lenders because they worry that multiple applications will damage their credit score. Fortunately, credit scoring models often recognize that consumers shop around for major loans such as mortgages, auto and student loans.

Multiple inquiries for the same type of loan within a short period are often grouped together and treated as a single inquiry for scoring purposes. This allows consumers to compare rates without significant long-term credit damage.

What Actually Impacts Your Credit

While the previously mentioned financial actions may not hurt your credit score, there are still several poor money management habits that can negatively affect your credit health over time, including:

  • Missing payments
  • Maxing out credit cards
  • Defaulting on loans
  • Frequently opening multiple new credit accounts
  • Ignoring accounts sent to collections

At First Financial, we believe financial education is an important part of long-term financial wellness. Whether you’re working on building credit, improving your budget, or planning for future financial goals – our team is here to help support you along the way.

If you have questions about credit management, lending, or financial planning, contact us today or schedule an appointment at your local branch.

A First Financial membership is available to anyone who lives, works, worships, volunteers, or attends school in Monmouth or Ocean Counties.  A $5 deposit in a base savings account is required for credit union membership prior to opening any other account. Contact the Credit Union for more information.

Ways to Boost Your Credit if You’re Looking for a Home

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The weather isn’t the only thing heating up – the spring homebuying market will soon be, too. Whether you’re considering making your move this spring or further down the road, your credit score will have a direct impact on your ability to obtain a mortgage and what you will pay for your home over time. Keep reading to learn potential benefits to boosting your credit score and some different ways to do so, before applying for a mortgage.

What is your credit score important when applying for a home loan?

As you probably know, a credit score is the number lenders use to determine your creditworthiness. Check out our guide to understanding your credit score to see all the factors that make up your score. When looking to finance a home, lenders will use the information on your credit report to decide if you’ll qualify for a mortgage and if you do – how much you can afford to pay and the interest rate that will be offered to you.

What are the potential benefits of increasing your credit score before applying for a mortgage?

  • You’re more likely to qualify for a mortgage. Lenders want to see that you have been, and can continue making on-time payments if they were to lend to you. Additionally, they want to ensure you can comfortably take on your mortgage payment along with the other payments you are making on any outstanding debt.
  • Lower interest rates. The interest rate offered to you by a lender is again based on your credit profile. Qualifying for a lower mortgage rate can save you thousands of dollars over the life of the loan.

How can you boost your credit score?

  1. Pay Your Bills in Full and On Time

Payment history shows whether you’ve made on-time payments on your reported loans and if not, how late any previous payments were made. This has the biggest impact on your credit score – making up 35%. If a payment is late, it generally impacts your score negatively and delinquency can stay on your credit report for up to seven years. Over time, the impact of late payments on your score will decrease.

Making your loan payments on time will continue to improve your credit. Additionally, making all payments on past-due accounts can help you avoid further delinquency on your report and build positive payment history.

  1. Lower Your Credit Utilization

Your credit utilization is the amount of available credit you are using. To calculate yours, divide your total credit card balance by your total credit limit, then multiply that number by 100. As a rule of thumb, try to keep your credit utilization for each credit card to 30% or less. To lenders, higher utilization signals a higher risk of missing payments and defaulting on your debt – as it shows you are relying on borrowed money and could be struggling financially.

There are two ways to lower your credit utilization – pay down debt or request credit limit increases. Paying down debt brings the total amount down, while a credit limit increase brings your available credit up. However, try to avoid spending more to match any credit limit increase so you don’t find yourself in more debt.

  1. Slow Down on Applying for & Opening New Accounts

Opening numerous loans and credit cards in a short time can hurt your credit score. New accounts are tied to factors that make up your credit score, such as length of credit history and new credit.

Length of credit history considers factors like the average age of your accounts, and your oldest and newest accounts. Generally, a longer credit history is better for your credit and shows you’ve successfully managed your debt over time.

When you apply for new credit, an inquiry is placed on your credit report. An inquiry shows that a lender requested your credit information, likely to make a lending decision. Depending on other factors in your report, this inquiry may temporarily drop your score.

  1. Review Your Credit Report

Before applying for any type of loan, it is always best to obtain a copy of your credit report and verify that the information is accurate and up to date. This will help you catch potential errors, which you can correct by contacting the credit bureaus before applying for a loan. Federal law allows you to get a free copy of your credit report every 12 months from each credit reporting agency. You can request your free credit report at AnnualCreditReport.com.

If you’re located in Monmouth or Ocean Counties in New Jersey and considering springing into the homebuying market this season, we can help welcome you home with a First Financial Mortgage! Our mortgage loans have terms up to 30 years, personalized service, low fees, and no pre-payment penalties.* If you’re just getting started and have questions, schedule a no-commitment video chat or phone call with one of our mortgage experts. You can also register for our text alerts to see when our mortgage rates change. We’re happy to help with your homebuying journey every step of the way!

*APR = Annual Percentage Rate. Subject to credit approval. Credit worthiness determines your APR. Rates quoted assume excellent borrower credit history and are for qualified borrowers. Your actual APR may vary based on your state of residence, approved loan amount, applicable discounts and your credit history. Higher rates may apply depending on terms of loan and credit worthiness. Minimum mortgage loan amount is $100,000. Available on primary residence only. The Interest Rates, Annual Percentage Rate (APR), and fees are based on current market rates, are for informational purposes only. Rates and APRs listed are based on a mortgage loan amount of $250,000. Mortgage insurance may be required depending on loan guidelines. This is not a credit decision or a commitment to lend. If mortgage insurance is required, the mortgage insurance premium could increase the APR and the monthly mortgage payment. See Credit Union for details. A First Financial membership is required to obtain a Mortgage and is open to anyone who lives, works, worships, volunteers, or attends school in Monmouth or Ocean Counties. 

Risky Places to Use Your Debit Card (and What to Use Instead)

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Your debit card is convenient, easy to use, and connected directly to your checking account. But that convenience can also mean direct access to your money is on the line if something goes wrong. Unlike credit cards, debit cards pull funds directly from your bank account. If fraud occurs, the money may disappear immediately and can take time to recover while the financial institution investigates.

That’s why it’s important to know where using a debit card may put you at greater risk and when a different payment method might be a safer option. Below are some of the most common places where debit card fraud can occur and what you can do to protect yourself.

Gas Station Pumps

Paying at the pump is one of the most common places criminals target. Gas pumps can be vulnerable to card skimming devices, which secretly capture card information when you insert or swipe your card. These devices can be difficult to detect and may transmit your data to thieves instantly.

Safer options:

  • Use a credit card (or cash), instead of a debit card when at a gas station.
  • When traveling outside of NJ, pay inside instead of directly at the pump.

Outdoor ATMs

ATMs located outside convenience stores, gas stations, or other high-traffic areas can present a risk. As these ATMs may be less monitored, criminals sometimes attach skimming devices or hidden cameras to capture card numbers and PINs here too.

Safer options:

  • Use ATMs directly inside a financial institution or in well-lit locations.
  • Shield your PIN when entering it.
  • Regularly monitor your account for any suspicious activity.

Online Shopping

This method of shopping is convenient, but entering your debit card information online can expose your bank account if the retailer experiences a breach or if the site is fraudulent. With debit cards, fraudulent transactions may immediately withdraw the funds from your account – even while the investigation is underway.

Safer options:

  • Use a credit card for online purchases.
  • Shop only on secure websites (look for “https” at the beginning of the URL).
  • Consider using digital wallets (PayPal, Apple Pay, Google Pay, etc.) or virtual card numbers when available.

Bars, Restaurants, and Busy Retail Environments

Any situation where your card leaves your sight, even briefly – can increase the risk of unauthorized use. In busy environments like bars or restaurants, it can be easier for card information to be copied or mishandled.

Safer options:

  • Use a credit card.
  • Use contactless or mobile payments when available.
  • Review your receipts and account transactions regularly.

Why Credit Cards Often Offer More Protection

Both debit and credit cards have fraud protections, but they work differently. If fraud occurs on a credit card, the funds are not tied to your checking account – and you can dispute transactions without immediately losing funds. With debit cards, the money comes directly from your bank account and may take time to be restored. This is why many financial experts recommend using credit cards for certain transactions – especially online purchases, travel, and higher-risk environments.

Smart Habits to Protect Your Cards

No matter where you use your card (or which kind of card), a few simple habits can help protect your finances:

  • Set up transaction alerts.
  • Review your account regularly for unfamiliar charges.
  • Report lost cards or suspicious activity immediately.
  • Use contactless payments or digital wallets when possible.

Learn More: When to Use Credit vs. Debit

Both debit and credit cards have a place within your financial toolkit. Understanding when to use each can help you protect your money and manage your spending more effectively.

Learn more in our guide: Credit vs. Debit: Which Should You Use?

How to Use Your Credit Card Responsibly as the Holiday Season Approaches

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The holiday season is just about upon us, as decorations go up, shopping lists grow, and with travel, gifts, dining out and year-end fun – your credit card usage may begin to spike. At First Financial, we want to help you make the most of having a credit card without letting it become a source of stress or debt. With a few smart habits, you can enjoy the convenience and rewards of a credit card and protect your financial health this upcoming holiday season.

1. Pay Your Balance in Full and On Time

When you carry a balance month to month, interest creeps in – and that can turn a festive purchase into a long-term burden. Experts recommend paying the full statement balance whenever possible (or at least more than the minimum) to avoid interest charges. Setting up automatic payments will help ensure you never miss a due date and get charged a late fee, which is one of the largest factors in your credit profile.

Holiday tip: Before you swipe or tap for that festive party or outing, ask: “Will I be able to pay this off when the bill arrives?” If yes, go ahead. If not, consider adjusting your plan.

2. Keep Credit Utilization Under 30%

Credit utilization is the percentage of your available credit that you’re using and it’s one of the key drivers of your credit score. Experts suggest keeping it under 30%.

Holiday tip: If you have one card with a $5,000 limit, aim to keep the balance below $1,500. If you plan on heavy seasonal spending (gifts, travel), consider spreading purchases across multiple cards or paying down running balances before the statement posts.

3. Understand Your Card’s Terms and Fees

Before you rush into holiday spending, take a moment to review your card’s terms, interest rate, penalty fees, foreign transaction fees (if traveling), cash advance fees, and any annual fees or promotional offers. You want to avoid surprises. For example, some cards may charge more if you miss a payment and trigger a higher penalty rate.

Holiday tip: If you’re traveling during the holidays or giving gifts internationally, make sure your card doesn’t charge extra fees for foreign transactions.

4. Automate Payments and Use Alerts

One of the simplest ways to stay on top of your card: Turn on alerts for due dates, when you approach your credit limit, or when a charge posts. These alerts can help you avoid missed payments and the resulting fees.

Holiday tip: Since your schedule may be hectic with shopping, travel, and events, automation and alerts can help ensure that you won’t forget a payment in the rush of the season.

5. Use Rewards Responsibly

Rewards cards are a great perk, they can make your regular spending work for you. But they truly pay off when you’re paying off your balance regularly. Otherwise, the interest you pay may outweigh the reward value.

Holiday tip: Use your First Financial Cash Plus Credit Card to earn rewards on essentials you’d be buying anyway (groceries, travel, gifts) but avoid charging “just for points,” unless you can pay it off right away.

Don’t have one of our Cash Plus Cards? Apply today.*

6. Don’t Miss Out on Welcome Offers, But Don’t Overspend to Chase Them

Many cards offer attractive sign-up bonuses or introductory offers. These can be worth it, as long as you don’t buy more than you can afford just to qualify. Overspending may cost you more than the bonus is worth.

7. Create a Holiday Spending Plan

Because holiday spending tends to spike, it’s wise to create a mini-budget specifically for the season. Estimate the cost of gifts, travel, meals out, décor, shipping, etc. Then decide how much you’ll put on your credit card and ensure you can pay it off as quickly as possible. Keeping this in mind helps you avoid accumulating a balance that you’re still paying off after the decorations come down.

8. Choose the Right Card and Talk to Us

We offer credit cards designed with your financial well-being in mind. We provide competitive rates, transparent terms, rewards programs, and flexible payment options.* If you don’t already have a credit card with us, or if you’d like to compare your current card to see if we’re a better fit, now’s a great time to reach out.

Why go with First Financial?

Here at First Financial, we’re not just issuing a credit card – we’re also partnering with you in your financial journey.

The holiday season is a wonderful time for giving, gathering, and making memories, and shouldn’t be marred by financial stress. By sticking to a holiday spending plan, you can enjoy the season and maintain strong credit health.

Let us help you make the most of your credit card this holiday season. Visit your local branch to review your options, set up automated payments and alerts, or simply get advice tailored to your spending plan. Here’s to a happy, financially healthy holiday season!

*APR varies up to 18% for the Visa® Cash Plus Card when you open your account based on your credit worthiness. This APR is for purchases and will vary with the market based on the Prime Rate. Subject to credit approval. Rates quoted assume excellent borrower credit history. Your actual APR may vary based on your state of residence, approved loan amount, applicable discounts and your credit history. No Annual Fees. Other fees that apply: Balance Transfer and Cash Advance Fees of 3% or $10, whichever is greater; Late Payment Fee of $29, $10 Card Replacement Fee, and Returned Payment Fee of $29. A First Financial membership is required to obtain a Visa® Credit Card and is available to anyone who lives, works, worships, volunteers, or attends school in Monmouth or Ocean Counties. A $5 deposit in a base savings account is required for credit union membership prior to opening any other account/loan. Your First Financial Visa® Cash Plus Credit Card will earn cash back based on your eligible purchase transactions. The cash back will be applied to your current credit card balance on a quarterly basis and be shown cumulatively on your billing statement. Unless you are participating in a limited time promotional offer, you will earn 1% cash back based upon eligible purchases each quarter.

How’s Your Credit? Mid-Year Credit Score Check-In

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As the year hits its halfway point, it’s also the perfect time to hit pause and check in on your financial health – especially your credit. Your credit score plays a big role in determining your eligibility for loans, credit cards, rental applications, and more. While most people wait until they need credit to check on it, a mid-year review can help you stay ahead of any surprises. Not sure where to begin? Here are some things to consider that may help improve your credit score.

 Pull Your Credit Report and Review it Carefully

You can access your credit report at no-cost on AnnualCreditReport.com. Look for:

  • Any accounts you don’t recognize (this could be a sign of identity theft).
  • Inquiries you didn’t authorize.
  • Payment history and status of accounts.

Review Credit Card Balances, Utilization, and Rates

One of the biggest factors affecting your credit score is credit utilization, or how much available credit you’re using. The general rule is to keep this below 30%, but the lower the better. For example, if you have a $5,000 credit limit – aim to carry no more than a $1,500 balance. Make a list of all your credit cards, their current balances, and limits. Create a payoff plan to reduce any high balances if they’re creeping up toward that 30%.

Some credit card companies will change interest rates based the market (prime rate), or your credit profile. Review your most recent statements or contact your card issuer directly, if you are unsure of your current APR. If your rate has increased and your credit is still in good standing, consider transferring your balance to a lower-rate card (First Financial has some great options!).

Monitor Progress Toward Paying Off Debt

If paying off debt was one of your 2025 goals, now is the time to assess your progress. Look at:

  • How much you’ve paid off so far this year.
  • What your current payoff timeline looks like.
  • Whether you can increase your monthly payments, even slightly.

Consider using debt payoff methods like the avalanche method (tackling the highest interest debt first) or snowball method (paying off the smallest balance first for motivation), to cut down on debt and increase your credit score.

First Financial is Here to Help

Whether you’re looking to pay off high-interest debt, consolidate balances, or build credit from scratch – First Financial offers tools to support your journey:

Visit firstffcu.com, call 732-312-1500, or stop by your local branch to take the next step in your credit health journey.

*A First Financial membership is required to obtain any loan and is available to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties. See credit union for details. A $5 deposit in a Base Savings Account is required to establish membership prior to opening any account/loan.

Smart Ways To Use Your Credit Card Rewards This Summer

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Summer is all about soaking up the sunshine, making memories, and — ideally — sticking to your budget. If you have a rewards credit card, you may already hold the key to a more affordable and enjoyable summer. At First Financial, our Visa Signature Cash Plus Credit Card allows members to earn cash back and uChoose Rewards points that can be redeemed in various fun, practical, and rewarding ways.* Here are some great ideas to help make the most of your credit card rewards this summer.

1. Book Your Dream Vacation

Whether heading to a tropical beach or planning a relaxing weekend close to home, travel expenses can add up quickly. Luckily, your uChoose Rewards points can help offset big-ticket items like flights, hotel stays, and even cruises. With your travel partially or fully covered, you can use more of your travel budget for experiences and relaxation, without compromising on fun.

2. Live in the Moment without Breaking the Bank

Fortunately, cash back rewards can help take the sting out of seasonal expenses. Our Visa Cash Plus Credit Card allows you to earn rewards on everyday purchases, then redeem them later to help offset credit card expenses. Whether it’s gas for a weekend getaway, supplies for your next BBQ, or your weekly grocery haul – those daily swipes add up to future savings on purchases you would have made anyway.

3. Treat Yourself

Summer is the perfect time to indulge a little. Maybe it’s a fancy dinner out, a gadget you’ve been eyeing, or a spontaneous day trip down the shore. Use your earned cash back rewards as a statement credit to be applied to your next credit card bill, and turn those treats into guilt-free fun. You’ve already earned that cash back, so use it on a treat for yourself!

4. Share the Joy with Friends and Family

Your rewards can go even further when you use them to celebrate others. Use your uChoose Rewards points to find the perfect gift for a birthday, graduation, or other summer milestone. From merchant gift cards, to electronics, home goods, and accessories – you’ll have plenty of ways to spread the love. Plus, you can also redeem your rewards directly through the Apple Store for the latest Apple products, as well as on various merchant websites to reduce your total cost when PayPal is selected as a payment option during checkout.

5. Prep for Back-to-School Season

Summer may have just gotten started, but back-to-school season will creep up before you know it. Redeem your rewards to stock up on school supplies, electronics, or even new clothes for the kids. Using points for these essentials can free up room in your budget for more summer fun or help you transition between seasons a little more smoothly.

Maximize Your Rewards with First Financial

No matter how you choose to use them, your credit card rewards are a smart way to stretch your money a little further. If you’re not already taking advantage of our First Financial Visa Signature Cash Plus Credit Card, now is the perfect time to apply! For more tips on using your credit card wisely or to explore our other credit card options, visit us at firstffcu.com, call 732.312.1500, or stop by a local branch.

 *Your First Financial Visa® Cash Plus Credit Card will earn cash back based on your eligible purchase transactions. The cash back will be applied to your current credit card balance on a quarterly basis and be shown cumulatively on your billing statement. Unless you are participating in a limited time promotional offer, you will earn 1% cash back based upon eligible purchases each quarter. APR varies up to 18%, when you open your account based on your credit worthiness. This APR is for purchases and will vary with the market based on the Prime Rate. Subject to credit approval. Rates quoted assume excellent borrower credit history. Your actual APR may vary based on your state of residence, approved loan amount, applicable discounts and your credit history. No Annual Fees. Other fees that apply: Balance Transfer and Cash Advance Fees of 3% or $10, whichever is greater; Late Payment Fee of $29, $10 Card Replacement Fee, and Returned Payment Fee of $29. A First Financial membership is required to obtain a Visa® Credit Card and is available to anyone who lives, works, worships, volunteers, or attends school in Monmouth or Ocean Counties.