Northwest Bank & Trust Company is encouraging customers to plan for their financial future by establishing and maintaining good credit habits to create a blueprint for financial wellness and prosperity in the New Year.
Good credit is essential to a strong financial foundation, so it’s important to build and maintain responsible credit practices that demonstrates sound money management principles to help you achieve your short and long-term financial goals. By working with your trusted community banker at Northwest Bank to create a budget that reflects your finances and lifestyle, you can better manage your spending and savings behavior to reach your goals and avoid financial setbacks.
We offer the following tips to help consumers build and maintain good credit.
Open a checking account.
Once you open your account, 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.
A good credit mix could be a revolving credit line and an installment loan, for example. This will 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, show credit stability. Avoid opening or closing accounts or moving large amounts of money around.
Build an emergency fund.
Your emergency fund should be 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.
Keeping an eye on your credit score can help you correct any errors and detect potential signs of identity theft. Order a copy of your credit report annually from annualcreditreport.com.
By establishing good spending and saving habits early you can retain your financial footing and more quickly recover from temporary financial roadblocks. Reach out to your local banker at Northwest Bank & Trust Company who can offer sound financial advice to help you navigate life’s financial milestones and plan for your future.