Posted on October 16, 2024
Get More and Get Smart About Your Credit
Understanding your credit is a crucial step toward financial success. At Citizens State Bank, we’re all about helping you take control of your credit and protect what matters most. With our Get More™ Checking Account, you’re not just getting a checking account—you’re gaining tools to manage your credit, safeguard your identity, and put more money in your pocket.
Know Your Credit Score
The first step in managing your credit is knowing what your credit score is. Your score plays a major role in your financial opportunities, from loan approvals to interest rates. Many people spend extra on credit monitoring services, but with our Get More™ Checking Account, you get it included! By monitoring your score, you can catch any discrepancies and stay informed about what’s influencing your credit.
Understand the Components of Your Score
Your credit score is calculated using five main factors, each weighted differently:
- Payment History (35%): This is the most important factor. Paying bills on time shows lenders you’re reliable. Late payments can have a significant negative impact on your credit score. To avoid missing payments, consider setting up automatic payments. Timely payments not only improve your score but also help you avoid late fees and high interest charges.
- Credit Utilization (30%): This is the percentage of your available credit that you're using. Keeping your usage below 30% of your total credit limit can help boost your score.
- Length of Credit History (15%): The longer you’ve had credit, the better it is for your score. If you’re new to credit, this will grow over time. Avoid closing old accounts, even if you’re not using them. Keeping these accounts open helps to extend the average age of your credit history, which can positively affect your score.
- New Credit Inquiries (10%): Each time you apply for credit, a hard inquiry is recorded on your credit report. Multiple hard inquiries in a short time can lower your score. Be mindful of how often you apply for new credit and try to space out applications when possible.
- Credit Mix (10%): Having a variety of credit accounts, such as credit cards, loans, or mortgages, shows lenders that you can responsibly manage various forms of credit. This can benefit your score if managed responsibly.
At Citizens State Bank, we’re here to help you understand and manage your credit. Whether you’re looking to improve your score or just starting your credit journey, our team can provide guidance and tools to set you on the right path. Get smart about your credit today. Open a Get More™ Checking Account and start taking control of your financial future—while protecting your identity and saving money!
