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At Community First Bank we care about your financial wellbeing, and our bankers are experts trained to help you succeed with good solid financial advice. This includes tips for improving and building your credit score.

The good news is that credit scores aren’t random. Much like personal goals or performance at work, your credit score reflects your financial behavior—and you can improve your current credit score and maintain a good credit score over time. Even if your score isn’t where you’d like it to be, don’t give up hope, just get to work.

Below are some valuable tips to help you build and maintain good credit:

• Start early. Building your credit takes time. Whether you’re planning to rent an apartment, finance a car, or apply for a mortgage, having a solid credit history can make these experiences smoother and often more affordable.
• Pay bills on time. Payment history is a major component of building a good credit score.
• Live within your means. Don't borrow more than you can afford to pay back. Failure to repay money you’ve borrowed hurts your score.
• Keep track of expenses. Recording expenses and keeping a budget can help from overspending.
• Avoid using 100% of credit limits. This is especially important with credit cards. You don't want to hit your credit limit every month. A good rule of thumb is to use less than a third of the amount of credit you have available and try to pay it off every month. For example, if you have a credit card that has extended you up to $1,000 of credit each month. You might be tempted to spend that amount each month. If you want good credit, you should try not to use more than a third of the credit available. In this case, that’s about $300.
• Keep private financial information secure. Victims of identity theft often spend countless hours trying to clean up their credit. Being extra careful to prevent this from happening in the first place is smart.
• Check credit reports annually. You’re entitled to one free copy of your credit report from each of the three credit reporting agencies (Equifax, Experian, & TransUnion) each year. You can request them all at once or only one at a time from the government-approved website, www.AnnualCreditReport.com. Some banks and/or credit card companies may also provide you with information about your credit, including credit bureau reports and FICO® score. Learn more about FICO® score here: FICO Score Explained: What It Means and Why It Matters