If you're looking to the new year as a time to build better credit habits, consider these tips, courtesy of the Independent Community Bankers of America.
  • Open a checking account and keep track of your balance to help establish a credit history.
  • Use debit and credit cards for convenience and safety, but don't overspend or miss payments, which can negatively affect your credit score.
  • Develop a mix of credit (such as a revolving credit line and an installment loan) to demonstrate your proficiency managing several 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 to help absorb unexpected expenses and avoid penalties and fees for missed or delinquent payments.
  • Alter your credit focus as you approach different life stages. While Gen Z might be saving for a down payment, Gen X-ers or baby boomers may be paying down debt or planning for retirement, respectively.
  • Monitor your credit to correct any errors and detect potential signs of identity theft. Order your credit report annually from www.annualcreditreport.com.
Got questions about credit? Contact your personal banker at Iowa State Bank.

This message is provided in partnership with the Independent Community Bankers of America.