March is National Credit Education Month, and honestly, it's a good reminder to slow down and talk about something that matters to just about everyone we serve. Credit touches nearly every major financial decision you'll make in life, and yet it's one of those topics that isn’t always explained in plain, straightforward terms. We want to change that.

Whether you're just starting out, working to rebuild, or simply want to make sure you're on solid footing, understanding your credit is one of the most empowering things you can do for yourself. So let's walk through it together.

 

What Is a Credit Score, Really?

Your credit score is a three-digit number typically between 300 and 850 that summarizes how reliably you've managed borrowed money over time. Lenders, landlords, and even some employers use it to get a quick sense of your financial responsibility.

The most widely used model is the FICO Score, and it's calculated based on five key factors:

  • Payment history (35%):  Do you pay your bills on time? 
  • Amounts owed (30%): Are you close to your credit limits? How much of your available credit are you using? 
  • Length of credit history (15%): How long have your accounts been open?
  • Credit mix (10%):  Do you use different types of credit, like credit cards, car loans, or a mortgage?
  • New credit (10%): Have you recently applied for new credit accounts?

A score above 700 is generally considered good, and above 740 will typically qualify you for the best loan rates available.

 

Unsure What Your Number Is? 

If you’ve never checked your credit score, the good news is finding it doesn’t have to cost you anything.  Here are a few easy ways to check:

  • AnnualCreditReport.com is the official site authorized by federal law, and it gives you a free credit report from each of the three major bureaus once a year. It's the best place to see the full picture of your credit history.
  • Your bank or credit card app may already show your credit score. Many financial institutions now include this as a free feature, so it's worth a quick look the next time you log in.
  • Experian.com lets you create a free account to view your FICO® Score and track changes over time — a great option if you want to keep a closer eye on where you stand.
  • Credit Karma offers free access to your TransUnion and Equifax scores and updates them regularly, so you can monitor movement as you build or maintain your credit.

Knowing your number is the first step. Once you do, you'll have a much clearer sense of what you need to work on.

 

Starting with Low or No Credit Scores

If you’re new to building credit or starting over after a rough patch, the good news is you’re not stuck with a low number forever. If your credit has taken some hits, whether from a difficult season of life, a job change, medical bills, or just past habits you've moved on from, know this: your credit score is not permanent. It's a snapshot, and snapshots can change.

Secured credit cards, credit-builder loans, and becoming an authorized user on a trusted family member's account are all practical tools for people working to rebuild. Progress can feel slow at first, but consistent habits add up over time. 
Here's what actually moves the needle:

Pay every bill on time. 
This is the single biggest factor in your score. Even one missed payment can have a noticeable impact, so set up autopay for at least the minimum due on any account.

Keep your credit utilization low. 
Try to use no more than 30% of your total available credit, and ideally less. If your credit card limit is $1,000, aim to carry a balance under $300.

Don't close old accounts unnecessarily. 
Length of credit history matters. Keeping older accounts open (even if you rarely use them) can work in your favor.

Be selective about new credit applications. 
Every hard credit inquiry can slightly lower your score. Apply for new credit when you have a clear reason to do so and not just because it is available.

 

High Scorers: Here's How to Keep It That Way

You've put in the work and it shows. A strong credit score opens real doors, and the good news is that keeping it there doesn't require much heavy lifting. It mostly comes down to staying consistent and staying aware.

Check your credit reports regularly.
You're entitled to a free report from each of the three major bureaus (Equifax, Experian, and TransUnion) every year through AnnualCreditReport.com. Even with a great score, errors and unfamiliar accounts can sneak in, so it's worth a quick look at least once a year.

Consider a credit freeze. 
If you're not actively applying for new credit, placing a freeze with the bureaus is one of the most effective ways to prevent someone from opening fraudulent accounts in your name. It's free, it's reversible, and for high scorers especially, it's a smart layer of protection.

Watch for the signs of identity theft. 
Unfamiliar charges, sudden score drops, or collection calls about accounts you don't recognize are all red flags worth taking seriously. The faster you catch something, the easier it is to resolve.

 

We're Here When You Have Questions

At TFNB Your Bank for Life, we believe financial knowledge belongs to everyone in our community, not just those who already have it figured out. Whether you're curious about your score, unsure where to start, or working through a more complicated credit situation, our friendly team of personal bankers is always glad to have a real conversation. No judgment, just honest guidance from people who know you by name.

FIND A LOCAL BANKER >