How do I use my credit card on current?

Understanding Credit Card Use with Current’s Build Card

Current’s Build card offers a unique approach to credit building, leveraging your spending to improve your credit score. This article outlines how to use your Build card responsibly and effectively. Understanding how transactions work and how repayments are handled is crucial for maximizing the benefits of this innovative credit-building tool.

Making Purchases:

Using your Build card is straightforward. Just like any other credit card, you can swipe or tap it at participating merchants to make purchases. Each transaction increases your outstanding balance, meaning you’ve borrowed money from Current that needs to be repaid. Crucially, the funds are also reserved from your available spending limit until the transaction clears. This differs slightly from a traditional credit card where the funds are immediately withdrawn from your available credit. The reservation acts as a built-in safeguard, preventing overspending and helping you manage your budget more effectively.

Understanding Reserved Funds:

The reserved funds are a key feature of the Build card. They are held temporarily and will be released back into your available credit limit once the transaction is fully processed by the merchant and Current. You can see your reserved funds alongside your available credit in the Current app, providing a clear picture of your spending capacity at any given time. This allows for proactive financial management, preventing accidental overspending and potential penalties.

AutoPay and Repayment:

Current’s Build card likely offers an AutoPay feature. This convenient option automatically deducts your minimum payment (or a customized amount you’ve set) from your linked Current account on your chosen due date. This automated repayment is crucial for maintaining a healthy credit history. On-time payments are a major factor in your credit score, and AutoPay ensures you consistently meet your repayment obligations. This consistent repayment history, reported to credit bureaus, is a key benefit of the Build card.

Monitoring Your Account:

Regularly monitoring your account through the Current app is essential. Track your spending, reserved funds, and upcoming payments to avoid unexpected fees or negative impacts on your credit score. Understanding your spending habits and keeping your balance below your credit limit are key to responsible credit card usage.

In Conclusion:

Using the Current Build card effectively involves understanding how transactions and repayments work. By utilizing the swipe/tap functionality, monitoring reserved funds via the Current app, and leveraging the AutoPay feature for timely payments, you can build your credit score responsibly and confidently. Remember, consistent and timely payments are the cornerstone of a positive credit history. Responsible use of your Build card can lead to improved financial health and access to greater financial opportunities in the future.