News

As the year begins, many people are creating New Year’s resolutions to improve their financial situation. When it comes to financial success, having good credit and money management skills are a sound starting point. Read on for some tips on how to make the first step towards your financial future.

Establish a Credit History

Length of credit plays a crucial role in building your credit score. Open a checking account and keep a close eye on your balance to help establish a positive credit history. Don't have a Kleberg Bank account? Open up a Freedom Plus Checking account today to experience the rewards.

Avoid Late Payments

Use your debit and credit cards for convenience, but be careful to not overspend, miss payments, or pay late. Falling behind on your payment schedule can damage your credit. Utilize the bill pay feature in online banking to stay on track.

Develop a Mix of Credit

Boost your credit score with a revolving credit line or installment loan, such as an auto, mortgage, personal, or student loan, to show that you can successfully manage different types of credit.

Show Stability

Three to six months before making a major purchase that will rely on your credit score, avoid opening or closing accounts and moving around large sums of money. This establishes your stability as a creditor.

Build an Emergency Fund

It’s sound advice to have at six months of living expenses saved in your emergency fund. With this strong financial cushion, you can avoid missed or late payments that hurt your credit. Explore your Kleberg Bank saving options here.

Find Your Focus

Depending on where you are in life, you’ll want to take varying approaches to your credit. Millenials and Gen Zers might focus on down payments for a house, while Baby Boomers will be wanting to plan for retirement. Finding where to put your energy will help you better actualize your financial goals.

Monitor Your Credit Score

Keep an eye on your credit score to stay in-the-know of any major changes, errors, or potential identity theft. You can find your free credit report and score from the top three trusted national companies: Equifax, Experian, and TransUnion.

By establishing these good habits early on, you can make big strides in recovering and strengthening your credit to achieve your New Year’s financial goals.