Whether you’re just starting out or working to repair past mistakes, one thing will always follow you: your credit score.
Your credit score is like a financial report card. It shows lenders, landlords, and even employers how responsible you are with money. The good news? No matter where you’re starting from, you can take steps today to build (or rebuild) a stronger credit score.
How Credit Scores Work (and Why They Matter)
Credit scores are based on five key factors:
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Payment History (35%) – Do you pay bills on time?
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Amount Owed (30%) – How much of your available credit are you using?
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Length of Credit History (15%) – How long your accounts have been open.
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Credit Mix (10%) – Having a variety of accounts (credit cards, car loans, student loans).
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New Credit (10%) – How often you apply for new accounts or have hard inquiries.
A higher score can unlock better loan rates, increase your chances of approval, and save you thousands of dollars in interest over time. But it also impacts areas you might not expect—like renting an apartment, setting up utilities, or even getting insurance.
What Does Your Credit Score Mean?
Credit scores typically range from 300-850 (FICO scale). Banks and credit card companies might provide free access to your credit score. Some Alliance Bank clients have access to view their credit score through our IdProtect monitoring service. The website AnnualCreditReport.com is a great tool for a free credit report each year; for a fee you can also view your credit score. When you apply for a loan, your lender may be able to share your score from their credit check.
If you have no credit history, you usually won’t have a credit score at all – it will show as “No Score” or “Not Available” when you or a lender checks. This isn’t the same as having a low score – it means there’s not enough information for the credit scoring model to generate a score.
Steps to Build or Rebuild Credit
If you’re ready to improve your financial standing, here are smart habits to follow:
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Pay on time, every time. This is the single most important factor in your score.
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Keep balances low. Aim to use less than 30% of your available credit.
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Avoid too many new accounts. Each hard inquiry can temporarily lower your score.
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Keep older accounts open. A longer history helps your score grow.
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Check your credit report. Mistakes happen—dispute errors right away.
Smart Credit Habits for Long-Term Success
Building or rebuilding credit doesn’t happen overnight. But with consistent, responsible habits, you can make steady progress. Think of credit as a long game—the decisions you make today set you up for more financial freedom tomorrow.
Start Building or Rebuilding with the Right Tools
Three great tools to help you on your credit journey:
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Starter Credit Card – Ideal for young adults or those new to credit. Make small purchases and pay them off each month to build positive history.
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Secured Credit Card – A great option for rebuilding credit. You provide a security deposit that sets your credit limit, making it easier to get approved and demonstrate responsible use.
- CD-Secured Loan – If you have savings you can set aside in a Certificate of Deposit, you can use the CD as collateral for a personal loan to build your credit.
These tools, when used wisely, can help you take control of your financial future while having a trusted local partner by your side. Alliance Bank wants to help you build or rebuild your credit. Let’s get started today…
- Apply for a Starter or Secured Credit Card*
- Contact a Relationship Manager to Learn More About a CD-Secured Loan**
*This card is issued by TCM Bank, N.A. Subject to approval.
**Subject to approval. Alliance Bank is an Equal Opportunity Lender.
