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New Year, New You?

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New Year, New You? 

If one of your goals for 2023 involves working on your credit, check out some helpful tips.

Good credit is a blueprint for financial success, so it is essential to create a track record that demonstrates sound money management principles as you plan your financial future.

  • Make your payments on time, every time.

  • Stay in your financial lane – manage your debt-to-income ratio.  This is the amount of monthly debt obligations in relation to your monthly gross income. 

  • Apply only for the credit you need.  In the checkout line, department store cards are very enticing, but consider your “need” for one before signing up.

  • Use credit cards wisely.  Be careful not to overspend.  Do not let your balance get close to your credit limit.  This is called credit utilization – the balance on your account compared to the credit limit on the account.  It is commonly recommended to keep your credit utilization rate below 30%.  For example, if your total credit limit is $10,000, try not to have your balance on that account exceed $3,000.

  • Develop a good mix of credit (such as a revolving credit line and an installment or mortgage loan) to boost your credit score and demonstrate that you can manage different types of credit.

  • Monitor your credit regularly so you can correct any errors and detect potential signs of identity theft.  Order a copy of your credit report annually from

  • Check out The Consumer Financial Protection Bureau’s (CFPB) website for lots of other helpful information.  Credit reports and scores | Consumer Financial Protection Bureau (


By establishing good spending and savings habits early you’ll be able to make your money work for you and speed up your recovery from temporary financial roadblocks.  Your local F & M Community Bank banker can offer