FDIC-Insured - Backed by the full faith and credit of the U.S. Government
Your financial goals are unique to you. Start, or resume, your personal financial journey by using the resources below. And remember, your bankers at Citizens First Bank are available to discuss your circumstances and next steps to reach your goals. We’re here to help!
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6 TIPS TO BUILD YOUR CREDIT
Begin building credit right away.
As your credit score grows, and you accumulate positive credit information, doors will open for you!
Tip 1. MAKE ALL PAYMENTS ON–TIME
1. MAKE ALL PAYMENTS
ON–TIME
Tip 1. MAKE ALL PAYMENTS ON–TIME
1. MAKE ALL PAYMENTS
ON–TIME
Your payment history is the single biggest factor affecting your credit score.
Paying only the minimum ammount is fine, if that's all you can manage.
Tip 2. MAINTAIN AVAILABLE
CREDIT LIMIT
2. MAINTAIN AVAILABLE CREDIT LIMIT
Tip 2. MAINTAIN AVAILABLE
CREDIT LIMIT
2. MAINTAIN AVAILABLE CREDIT LIMIT
Staying lower than 70% of the limit on any card is good practice. Focus on bringing down the highest ones.
Low balance is better for your score.
Tp 3. 3. GET A
CREDIT CARD
3. GET A CREDIT CARD
Tp 3. 3. GET A
CREDIT CARD
3. GET A CREDIT CARD
Choose a card from an issuer that reports payments to all three major credit-reporting bureaus.
If your credit card accounts have been closed, you may need to start over with a secured credit card.
Tip 4. APPLY TO A CREDIT-BUILDER LOAN
4. APPLY TO A CREDIT-BUILDER LOAN
Tip 4. APPLY TO A CREDIT-BUILDER LOAN
4. APPLY TO A CREDIT-BUILDER LOAN
Find one at your community bank. This kind of loan has one purpose: to help you improve your credit profile.
The lender holds onto the money as you repay, then funds are released.
Tip 5. BECOME AN AUTHORIZED USER
5. BECOME AN AUTHORIZED USER
Tip 5. BECOME AN AUTHORIZED USER
5. BECOME AN AUTHORIZED USER
Ask someone to add you as an authorized user on a credit card.
Ask someone with good credit habits, you can be added without actually giving you a card or card number.
Tip 6. GET A cO-SIGNER
6. GET A CO-SIGNER
Tip 6. GET A cO-SIGNER
6. GET A CO-SIGNER
Ask a family member or friend to co-sign a loan or credit card is a huge favor.
Be certain you can repay to keep co-signer’s credit reputation and your relationship.
Citizens First Bank and ICBA offer the following tips to help consumers build and maintain good credit
– Open a checking account and keep careful track of your balance to help establish a credit history.
– Use debit and credit cards for convenience and safety. Be careful not to overspend and avoid missed or late payments, which can damage your credit and hurt your credit score.
– Develop a good mix of credit (such as a revolving credit line and an installment loan) to boost your credit score and demonstrate that you can manage different 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. Establishing a financial cushion to help absorb unexpected expenses and avoid penalties and fees for missed or late payments.
– Alter your credit focus as you approach different life stages. While Gen Z might be saving for a down payment, a Gen Xers or baby boomers may be paying down debt to plan for retirement, respectively.
– Monitor your credit regularly so you can correct any errors and detect potential signs of identity theft. Order a copy of your credit report annually from www.annualcreditreport.com.
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EXTERNAL RESOURCES
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