Portland, TN (Jan. 4, 2024)— The Farmers Bank and the Independent Community Bankers of America (ICBA) are offering tips to help customers plan for their financial future by establishing and maintaining good credit habits for financial wellness and prosperity in the New Year.
Good credit is a blueprint for financial success, so it’s essential to create a track record that demonstrates sound money management principles as you plan your financial future. Your neighborhood community banker can work with you to create a budget that reflects your short- and long-term financial goals so you can avoid financial setbacks and stay on the path to financial independence.
The Farmers Bank and ICBA offer the following tips to help consumers build and sustain good credit.
Open a checking account and keep careful track of your balance to help establish a credit history.
Use debit and credit cards for convenience and safety. Be careful not to overspend and avoid missed or late payments, which can damage your credit and hurt your credit score.
Develop a good mix of credit (such as a revolving credit line and an installment loan) to boost your credit score and demonstrate that you can manage different types of credit.
Show stability in the three to six months before a major purchase. Avoid opening or closing accounts or moving large amounts of money around.
Build an emergency fund equal to at least six months of living expenses. Establish a financial cushion to help absorb unexpected expenses and avoid penalties and fees for missed or late payments.
Alter your credit focus as you approach different life stages. While Gen Z might be saving for a down payment, Gen Xers or baby boomers may be paying down debt to plan for retirement, respectively.
Monitor your credit regularly so you can correct any errors and detect potential signs of identity theft.
“By establishing good spending and saving habits early you’ll be able to make your money work for you and speed up your recovery from temporary financial roadblocks,” ICBA President and CEO Rebecca Romero Rainey said. “Reach out to your local community banker who can offer sound financial advice to help you navigate pivotal financial milestones and plan for your future.”
To find one of The Farmers Bank’s local branches, click here.
