National Credit Education Month was founded to increase awareness about the importance of building a positive credit profile and provide strategies on how to work toward a great credit score and excellent credit history.

Here are some tips to help build and sustain good credit:

• Open a checking account and keep track of your balance to help establish a credit history.
• Use debit and credit cards for convenience and safety, but don’t overspend or miss payments, which can negatively affect your credit score.
• Develop a mix of credit (such as a revolving credit line and an installment loan) to demonstrate your proficiency managing several types of credit.
• Show stability in the three to six months before a major purchase.  Avoid opening or closing accounts or moving large amounts of money around.
• Build an emergency fund equal to at least six months of living expenses to help absorb unexpected expenses and avoid penalties and fees for missed or delinquent payments.
• Alter your credit focus as you approach different life stages.  While Gen Z might be saving for a down payment, Gen Xers or baby boomers may be paying down debt or planning for retirement, respectively.
• Monitor your credit to correct any errors and detect potential signs of identity theft.
• Order your credit report annually from annualcreditreport.com

“To help maximize your available funds and help recover from temporary financial roadblocks, it is essential to establish good spending habits early,” ICBA President and CEO Rebeca Romero Rainey said. “Your community banker can help provide sound financial advice as you navigate important financial milestones and plan for the future.”

If you have any questions, we’re here to help!  Contact your Business Banker or Relationship Manager today to learn more about building and maintaining good credit.

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