Whether you're buying your first home, applying for a car loan, or just looking to build financial security, your credit score plays a major role in your financial journey. At Legacy National Bank, we believe that financial literacy is one of the most important tools you can have — and that starts with understanding how to build and maintain healthy credit.
Let’s break it down.
What Is a Credit Score?
Your credit score is a number (typically between 300–850) that represents your creditworthiness — or how likely you are to repay borrowed money. It’s based on your financial behavior, including how much debt you carry, your payment history, and how long you’ve had credit.
Lenders, landlords, and even some employers look at your credit score to make decisions. A higher score gives you access to better interest rates, more credit options, and stronger financial opportunities.
How to Build Credit from Scratch
If you're just starting out, here are a few smart ways to begin building credit:
1. Open a Secured Credit Card
This type of card requires a deposit and is a great option for beginners. Use it for small purchases and pay it off in full each month.
2. Become an Authorized User
If a family member has a good credit history, they can add you as an authorized user on their credit card — giving you the benefit of their credit habits.
3. Make Student Loan or Auto Loan Payments on Time
If you’ve already taken out a loan, make every payment on time. Your payment history is the most important factor in your credit score.
4. Use Credit Responsibly
Only borrow what you can afford to pay back. Start small and focus on building good habits.
Tips for Maintaining Healthy Credit
Once you’ve started building credit, it’s essential to manage it well. Here’s how:
1. Pay On Time — Always
Your payment history accounts for 35% of your credit score. Set reminders or enroll in automatic payments to avoid missed due dates.
2. Keep Balances Low
Aim to use less than 30% of your available credit. For example, if your card has a $1,000 limit, try to keep your balance under $300.
3. Avoid Opening Too Many Accounts at Once
Each credit application results in a “hard inquiry,” which can temporarily lower your score. Only apply when necessary.
4. Keep Old Accounts Open with Consideration
The length of your credit history matters. If possible, keep older accounts open to help boost your average account age; however, if the credit card has an annual fee, the consumer should consider that in the decision to keep the account open.
5. Monitor Your Credit Report
You’re entitled to a free credit report annually from each of the three major bureaus at AnnualCreditReport.com. Regularly reviewing your report helps catch errors and fraud early.
Legacy National Bank Is Here to Help
Whether you're just starting your credit journey or looking to improve your score, Legacy National Bank offers tools and resources to support your success:
- Friendly, local bankers ready to answer your questions
- Credit-building products and secured cards
- Personalized financial advice tailored to your goals
Building healthy credit doesn’t happen overnight — but with consistency, smart choices, and a trusted banking partner, you’ll be on the path to long-term financial wellness.
Ready to take the next step? Visit your nearest Legacy National Bank location or contact us to schedule a financial wellness check-in.