LearnAugust is National Wellness Month—a time to check in on your physical, mental, and emotional wellbeing. But there’s one area many people overlook: your financial health, especially your credit score.
Think of your credit score as a wellness report card for your finances. When it’s strong, you’re more likely to qualify for lower interest rates, better credit offers, and more favorable loan terms. When it’s not, it could cost you – literally. So, this month, let’s focus on building a healthier credit profile.
What is a credit score, and why does it matter?
Your credit score is a three-digit number that helps lenders understand your financial habits – how much you borrow, how reliably you repay, and how much debt you carry. The three major U.S. credit bureaus: Experian, Equifax, and TransUnion, track your borrowing behavior and summarize it into a score, usually between 300 and 850.
Any time you apply for a credit card, car loan, mortgage, or even certain jobs or rental applications, this number may be reviewed. A higher score can mean lower interest rates, higher approval odds, and more flexibility in your financial life.
What impacts your credit health?
Here are seven key factors that affect your credit report—and what you can do to keep each one in top shape:
1. Pay on time, every time
Payment history is the single biggest factor in your score. Even one missed payment can drag your score down. Automate payments where possible so you never fall behind.
2. Only borrow what you can comfortably repay
Credit cards and loans should be used wisely. Don’t stretch your budget. Keeping balances low helps your “credit utilization ratio” and signals to lenders that you’re responsible.
3. Mind your open accounts
Lenders consider not just what you owe, but how much credit you have access to. Too many open accounts – or maxing them out – can raise red flags.
4. Limit new credit applications
Each time you apply for a loan or card, it leaves a temporary mark (a “hard inquiry”) on your report. Too many applications in a short time can suggest financial stress.
5. Keep older accounts open
The age of your accounts matters. Older accounts help establish your financial reliability, so don’t close them without good reason, especially if they have a positive history.
6. Check for joint accounts
If you share credit (like a car loan or mortgage) with someone else, their credit habits affect you. If you’ve separated from a partner, make sure your credit histories are separated too.
7. Check your report for errors
Mistakes happen—and they can hurt your score. Review your credit report regularly to make sure all information is accurate. Dispute any errors with the bureau reporting them.
Where can you check your credit score?
Under U.S. law, you can get a free copy of your credit report from each major bureau once per year at AnnualCreditReport.com. Many financial institutions also offer free credit monitoring within your online banking dashboard.
You can also check your score at:
- Experian – www.experian.com
- Equifax – www.equifax.com
- TransUnion – www.transunion.com
- Credit Karma – www.creditkarma.com
- Credit Sesame – www.creditsesame.com
Final thought: you don’t have to do it alone
Keeping your credit “well” takes consistency—but you don’t have to go it alone. If credit challenges, debt, or budgeting stress are holding you back, FinFit’s certified financial coaches are here to help. They’ll work with you one-on-one to build a personalized plan, answer your credit questions, and guide you toward healthier financial habits. No judgment, just support.
Take a moment this National Wellness Month to give your credit score a check-up and get the expert help you need to strengthen it for the long haul.