Understanding Your Credit Journey
Your credit score is one of the most important numbers in your financial life. Whether you're buying your first home, getting a car loan, or applying for a credit card, your credit history tells lenders how reliably you've managed debt in the past.
At Sunmark Credit Union, we believe financial empowerment starts with understanding credit. A strong credit score can save you thousands of dollars in interest over your lifetime, while poor credit can limit your options and cost you more money.
What affects your credit score?
- Payment history (35% of your score) - Pay bills on time, every time
- Credit utilization (30% of your score) - Keep balances low on credit cards
- Length of credit history (15% of your score) - Keep older accounts open
- Credit mix (10% of your score) - Mix of credit cards, loans, and mortgages
- New credit inquiries (10% of your score) - Limit hard inquiries
Building good credit takes time, but the benefits last a lifetime. Start with small steps like paying bills on time and keeping credit card balances low. Even if you've made mistakes in the past, you can rebuild your credit with consistent, responsible habits.
