March is National Credit Awareness Month, a perfect time to check in on your financial health and better understand one of the most important numbers tied to your finances, your credit score.
Your credit score helps lenders determine how likely you are to repay borrowed money. It can impact everything from getting approved for a loan to the interest rates you’re offered on credit cards, auto and personal loans. The good news is that with the right knowledge and habits, improving your credit is achievable.
What Makes Up Your Credit Score?
Your credit score is calculated using several factors:
- Payment history
Paying bills on time is the single most important factor. - Credit utilization
This refers to how much of your available credit you’re using. Experts recommend keeping balances below 30% of your limit. - Length of credit history
The longer your accounts have been open, the more history lenders have to review. - Credit mix
Having a mix of different credit types (such as credit cards and loans) can help your score. - New credit inquiries
Applying for multiple lines of credit in a short period can temporarily lower your score.
Simple Ways to Improve Your Credit
Improving your credit score doesn’t happen overnight, but small actions add up over time.
Consider these tips:
- Pay bills on time every month
- Keep credit card balances low
- Avoid opening too many new accounts in a short period
- Check your credit report regularly for errors
- Set up automatic payments or reminders
Even modest improvements can make a big difference in the financial opportunities available to you.
How NW Plus Credit Union Supports Your Financial Journey
At NW Plus Credit Union, we believe financial education is key to long-term success. That’s why we focus on helping members understand their credit and build strong financial habits.
When you join NW Plus, you gain access to:
- Friendly financial guidance from local experts
- Responsible lending options designed with members in mind
- Educational resources to help you understand and improve your credit
- Free Credit Sense credit score/credit report monitoring
Join Us During National Credit Awareness Month
Whether you’re working to build credit for the first time or looking to strengthen your financial future, National Credit Awareness Month is the perfect opportunity to take the next step.
Becoming a member of NW Plus Credit Union means joining a community that’s committed to helping you reach your financial goals with the tools, knowledge, and support you need along the way.
