Good credit isn't just about borrowing—it affects your ability to rent, buy a home, and get better interest rates. Managing your debt and credit wisely can open doors to more financial opportunities.
Tips for Building and Maintaining Credit:
Always pay bills on time. Your payment history is the biggest factor in your credit score.
Pay more than the minimum. Minimum payments keep your account current, but paying off the full balance helps avoid interest and lowers your debt faster.
Keep credit utilization low. Try to use less than 30% of your total credit limit.
Check your credit regularly for errors or signs of identity theft.
If your credit score needs work, don't worry - it can be improved over time with consistent effort and smart strategies.
Steps to boost your credit score:
Pay down credit card balances, starting with those closes to the credit limit.
Keep old credit account open unless there is a compelling reason to close them - they help your credit history length.
Only apply for new credit when necessary.
Too many inquiries in a short period of time can lower your credit score.
If you are new to credit, consider a secured credit card or being added as an authorized user on a trusted family member's card.
Whether you’re just starting your financial journey or looking to strengthen your financial habits, a few extra tools and tips can go a long way. These additional resources can help you stay informed and on track.
Set calendar reminders to review your budget monthly. Adjust based on changes in income or expenses.
Use cash or prepaid cards for discretionary spending to avoid overspending on credit.
Avoid payday loans and high-interest borrowing—these can lead to cycles of debt.
Seek out community-based lending programs or credit unions for safer options.
Consumer Financial Protection Bureau (CFPB) – Offers tools, guides, and calculators for budgeting, paying down debt, and managing credit:
www.consumerfinance.gov
www.consumerfinance.gov
Smart About Money – A free resource from the National Endowment for Financial Education, offering self-paced financial courses: www.smartaboutmoney.org
Kentucky 211 (by United Way) – Dial 2-1-1 or visit www.211.org to access local assistance programs for housing, utilities, financial counseling, and more.
Jessica Marquez
State Specialist for Urban Community
Resource Development
Jessica.Marquez@kysu.edu