By Elizabeth Nelson, Communications & Multimedia Content Producer
Post holidays and tax season can be a good time for financial reflection, an opportunity to check in with your credit score - that three-digit number that has powerful implications on your financial wellbeing - especially if you're in the market for a big purchase or even a new job.
Credit scores are essentially a way to evaluate your borrowing and repayment history.
"Credit is simply your reputation for how you pay your bills," said Stephanie Martin, Certified Credit Union Financial Coach. "You have an opportunity to make it better."
For a quick primer on credit, check out Understanding Credit on our Money Mindset blog.
As outlined by our education partners at Banzai, scores between 670 and 739 are good; scores between 740 and 799 are very good; and scores between 800 and 850 are excellent. If your score is below 670, you may have a harder time getting approved for an auto loan, a mortgage, or another credit card. Employers and landlords may also consider credit scores to determine if you are dependable or in debt. Maintaining a good score or higher is ideal.
Not sure what your score is? You can create free accounts with any (or all) of the three major credit bureaus: Experian, Equifax and TransUnion. These are some of the most reliable sources, plus your credit report will allow you to look for incorrect or fraudulent information tied to your social security number. You can also use services like SavvyMoney, which is available to all Greylock members - just use our Digital Banking services to access for free.
Once you know your score, you can determine actions to help improve and maintain a good credit score. Here are 5 tips to get you started.
1. Make payments on time.
The most effective action you can take for financial wellbeing is paying your bills on time. Setting up auto payments can help you stay on top of due dates. Payment history - the good (on time), the bad (late) and the ugly (missed) - accounts for 35% of your score. A payment that is 30+ days late stays on your report for 7 years! So, it's really important to pay on time.
If you know you're going to have trouble making a payment, call the business before the due date has passed. Many businesses will work out payment plans or help you figure out ways to lower your bill. You can also meet with a Certified Credit Union Financial Counselor at Greylock's Community Empowerment Center or a branch of your choice - our coaches are great at tackling budget concerns.
2. Pay down debt.
Your score will be improved by reducing the amount you owe, which includes debt on credit cards and loans. The amount you owe accounts for 30% of your score. Focus on paying down the highest balances first, known as the Avalanche Method. Or you can try the Snowball Method where you focus on paying down the lowest balance credit card. The method you choose can depend on your preference to see progress or save money.
3. Diversify your credit.
Another great way to boost your score is to diversify your credit, which means having a healthy mix of credit such as a credit card, an installment loan like a mortgage, and a car or student loan. Typically, this happens over time as you meet the financial needs of life, but if you're early on your credit journey, this could be a natural next step.
4. Dispute inaccurate info.
When you pull your credit reports with the three bureaus listed above, go through them carefully to look for inaccurate information or fraudulent activity. For example, you may discover an account has been opened in your name, or someone used your address for their account. Contact all three of the credit bureaus to request this be fixed. Follow the instructions online - or if you need help, reach out to a financial coach at Greylock.
5. Avoid hard inquiries.
A credit inquiry or pull is a record that is created when an authorized entity makes a request to view your credit report from a credit bureau. Typically, this is done to assess your score and history, such as when applying for a credit card or loan. There are two kinds of inquiries, soft and hard. A soft inquiry, such as reviewing your own credit or taking advantage of a pre-approved credit card offer, does not affect your credit, but a hard inquiry can knock a few points off your score, and this impact lasts for a year. Sometimes hard inquiries cannot be avoided, such as when you apply for a mortgage or personal loan. Learn more about soft and hard inquiries here so you can make educated decisions.
Credit is a complex subject and key to your financial wellness. There is a wealth of information online. Below are a few resources if you're looking for a deeper dive. And remember, Greylock is here to help. Reach out to us anytime!
Additional Resources
- 26 Tips to Improve Credit in 2026: If you're looking for additional ways to improve your credit, Experian has a lot of great ideas!
- Building Credit: It takes credit to get credit, and credit is crucial to buying a new home, finding a place to rent, or purchasing a new car. You have to start somewhere, so start here.
- Take Your Credit from Good to Great: The benefits of a great credit score go way beyond a feather in your cap. It can translate into serious financial savings in the form of lower interest rates, better terms, and more.
- Repairing Credit: Not sure where to begin repairing a less-than-ideal credit score? Check out this online coaching session.