6 Clever Ways To Use Your Bank’s Tools To Build and Maintain Better Credit
Written by
Kellan Jansen
Edited by
Jenna Klaverweiden
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Having good credit can make your financial life much easier. A good credit score will help you qualify for loans, pay lower interest rates and access credit when you need it. But maintaining a high credit score isn’t always easy.
Nearly 30% of Americans have a credit score that’s “poor” or “fair,” according to Experian. If you’re one of them, your bank may be able to help. Here are six tools your financial institution may provide to help improve your credit score.
Track Your Credit
Just 27% of adults say they track their credit score monthly, per Lexington Law. That’s problematic since you need to understand a problem before you can fix it. Some banks offer free tools for customers to track their credit without impacting their scores.
Keeping an eye on your score will help you notice and resolve credit issues faster. It could also help you stay on track financially by keeping you aware of what’s going on.
Take Advantage of Free Online Resources
Many banks publish free financial resources on their websites. These can help you build or maintain credit in various ways. For example, a bank’s blog may contain articles on credit improvement.
Some banks also share financial calculators. For instance, you might find a mortgage calculator that helps you understand how your credit score will impact your interest rate.
You may also have access to free budgeting tools in your bank’s mobile app. These can help you track your spending more effectively, save money and free up financial space to focus on building credit.
Use Alerts Wisely
One step toward building a solid credit profile is taking good care of your everyday finances. Your bank probably has alert systems in place that will make this easier to do. For instance, you can often set up automatic alerts for events like these:
- Overdrafts
- Large charges
- Unusual account activity
- Updates to your account information.
These alerts can help you avoid financial issues stemming from unexpected expenses — like that buy-now, pay-later installment you agreed to last month and then forgot about.
Avoiding tough situations like this will keep you financially healthy enough to focus on building credit. And your bank probably offers everything you need to do it for free.
Take Advantage of In-Person Branches
Nowadays, 78% of U.S. adults prefer to bank online or through a mobile app, per Forbes. There’s nothing wrong with that, but it could mean you’re not taking full advantage of the free services your bank offers.
If your institution has a physical branch network, consider stopping by sometime. You could talk to a banker about your personal financial situation and how you’d like to improve it. They can leverage their expertise to ensure you’re following the right practices and using the best tools to reach your goals.
Consider a Secured Credit Card
Your bank may also offer secured credit cards. These can be a fantastic way to start rebuilding your credit after a tough financial stretch. They can also be helpful for people just beginning their credit journeys.
Secured cards are backed by a cash deposit you’ll have to make. However, using the card responsibly can help you build your credit up so that you can qualify for a traditional credit card in time. It’s a tool that virtually anyone can use to get their score back on track.
Evaluate Special Account Options
Finally, your bank may offer unique accounts that are designed to help you achieve financial goals like building credit. For instance, there are some checking accounts that will automatically report rent and utility payments to the credit bureaus. That way, you benefit from making on-time payments without having to do any extra work.
You may also use the same bank as a more financially established family member. If so, look into joint account options. For instance, your parents might be able to add you to their credit card as an authorized user. This could help you improve your score faster without taking any additional steps.
At the end of the day, you should use whatever tools and resources work best for you. No two financial situations are entirely alike, and your path to building or rebuilding your credit will reflect that.
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