Credit Health: Tips for Building and Maintaining a Strong Credit Score 

A strong credit score could be one of the most important valuable assets in your financial toolkit. It could open doors to better loan rates, help you qualify for a mortgage or car loan, and potentially even impact things such as insurance rates or rental applications. Whether you’re just starting out or looking to boost your score, understanding credit health and how to maintain or improve it may make a big difference in your financial journey. 

What Is Credit Health and Why Does It Matter? 

Credit health may reflect your financial behavior. It could show lenders how responsible you are with borrowing and repaying money. Your credit score is a number that summarizes that history. The higher your score, the more trustworthy you may appear to potential lenders. 

Strong credit may help you: 

• Qualify for loans and credit cards 

• Get better interest rates 

• Secure lower insurance premiums 

• Avoid extra security deposits for utilities or rentals 

The most commonly used credit score is the FICO Score, which ranges from 300 to 850. A score above 670 could be considered good, while anything above 740 could be considered very good to excellent. 

How to Build Credit Fast and Responsibly 

If you’re just starting to build credit, there are a few steps you could take to try and establish a positive credit history: 

• Apply for a secured credit card: These cards, like the Service CU Visa® Everyday Starter Credit Card, are backed by a cash deposit and could be a great way to start building credit safely. 

• The key to try and build credit fast is consistency. Make small purchases you can afford to pay off in full, and always try to pay your bill on time. 

Improve Your Score with Smart Credit Habits 

Improving your credit score may take time but there are a few steps you could take right away: 

1. Watch Your Credit Utilization 

Credit utilization refers to how much of your available credit you’re using. Experts recommend trying to keep your balances below 30% of your total credit limit. For example, if your credit card limit is $1,000, try to keep your balance under $300. 

2. Avoid Opening Too Many Accounts at Once 

Each time you apply for credit, a hard inquiry could be added to your credit report. Too many inquiries may signal risk to lenders, and may lower your score. Try to apply for credit only when you truly need it. 

3. Check Your Credit Report 

You’re entitled to one free credit report each year from each of the three major credit bureaus: Equifax, Experian and TransUnion. Reviewing your reports could help you catch errors and spot signs of fraud early. 

4. Keep Old Accounts Open 

Length of credit history could play a role in your score, so think twice before closing old accounts. If there’s no annual fee and the account is in good standing, consider keeping it open as it may help your credit. Remember to check your monthly statements. 

Responsible Credit Card Usage 

Credit cards could be a powerful tool when used wisely. Responsible credit card usage may include: 

• Only charging what you can afford 

• Setting up alerts for due dates or spending limits 

• Avoiding cash advances, which could come with high fees 

Used correctly, a credit card may be a helpful way to build and maintain good credit. 

Take Control of Your Credit Health 

Building and maintaining good credit isn’t about being perfect. It’s about trying to be  consistent, informed and intentional with your financial decisions. Whether you’re looking to improve credit score metrics or just starting out, the habits you build now could create lasting financial stability.