Good credit starts with great habits
Good credit can take you places. From everyday purchases to life's biggest milestones, discover smart habits that can make a difference.
Your credit score is more than just a number. It can influence everything from qualifying for a loan to the interest rate you pay. And while building good credit doesn't happen overnight, the habits that get you there can be surprisingly simple.
Get Smart About Credit Month is a reminder that building strong credit is worth thinking about all year long. It’s a good time to check in on your credit health, understand what affects your score and make a few smart moves for your financial future.
Get Smart About Credit Month is a reminder that building strong credit is worth thinking about all year long. It’s a good time to check in on your credit health, understand what affects your score and make a few smart moves for your financial future.
What goes into your credit score?
Your credit score gives lenders a snapshot of how you've managed credit over time. While scoring models vary, several key factors generally influence your score:
- Payment history: Paying bills on time is one of the most important factors in maintaining good credit.
- Credit utilization: How much of your available revolving credit you're using can affect your score. Generally, lower balances relative to your credit limits are better.
- Length of credit history: A longer history of responsibly managing credit can work in your favor.
- Credit mix: Having experience with different types of credit, such as credit cards and installment loans, may positively influence your score.
- New credit: Applying for several credit accounts in a short period can temporarily lower your score.
Understanding these factors is the first step toward making your credit work for you.
Five habits that can make a difference
- Pay on time. Your payment history is one of the biggest factors affecting your credit score. Set up automatic payments or reminders to stay on track.
- Keep balances low. Just because you have a credit limit doesn't mean you need to use it. Experts recommend using no more than 30% of your available credit.
- Apply for credit wisely. Opening several accounts in a short period can temporarily lower your score. Only apply for credit when you need it.
- Check your credit report. Mistakes happen! Review your credit reports regularly to catch errors or suspicious activity. You can access free reports at AnnualCreditReport.com.
- Be patient. Good credit takes time. Consistent payments and responsible borrowing habits can make a meaningful difference.
Why good credit matters
Good credit means more financial opportunities. Whether you're buying a home, financing a car or planning for the unexpected, a strong credit history can make it easier to qualify for loans and secure better rates.
Small habits. Big possibilities.
Want to learn more? Explore Great Southern Bank's free financial education resources, including courses on credit scores, managing debt and building healthy financial habits.