Credit Score: Why It Matters and How to Take Control with SavvyMoney
Are you looking to build or rebuild your credit, but aren’t sure where to start? You're not alone — and St. Cloud Financial Credit Union is here to help so you don't have to figure it out by yourself.
Your credit score plays a major role in your financial life, yet it’s something many people don’t think about until they’re applying for a loan, credit card or mortgage. At SCFCU, it’s important to us to empower our members with financial knowledge to help set you up for an even better future. That’s why SCFCU offers access to SavvyMoney, a free credit monitoring and education tool that helps members understand, track and improve their credit score with confidence.
Understanding what your credit score is, why it matters and how to improve it can put you on a stronger path toward your financial goals. Whether you’re buying a home, financing a vehicle or simply working toward better financial health.
What Is a Credit Score?
A credit score is a three-digit number that represents your creditworthiness. Lenders use it to evaluate how likely you are to repay borrowed money. Your score is calculated based on information in your credit report, which includes details about your borrowing and payment history.
In simple terms, your credit score helps lenders decide:
Whether to approve your credit application
What interest rate you qualify for
How much you can borrow
The higher your credit score, the more favorable your borrowing options tend to be.
Why Your Credit Score Matters
Your credit score impacts more areas of your life than you may realize. While it’s commonly associated with loans and credit cards, it can also influence other financial and lifestyle decisions.
A strong credit score can help you:
Qualify for lower interest rates on auto loans, mortgages and personal loans
Save money over time by paying less in interest
Gain easier approval for credit cards and financing
Strengthen your overall financial profile
On the other hand, a lower credit score may result in higher interest rates, limited borrowing options or loan denials. That’s why monitoring and maintaining your credit score is an important part of long-term financial success.
What Affects Your Credit Score?
While credit scoring models may vary slightly, most scores are influenced by the same core factors:
Payment History: Paying your bills on time is one of the most important factors in your credit score. Late or missed payments can have a significant negative impact.
Credit Usage: This refers to how much of your available credit you’re using. Keeping balances low compared to your credit limits can help improve your score.
Length of Credit History: The longer your credit accounts have been open and in good standing, the better it can be for your score.
Credit Mix: Having a mix of credit types, such as credit cards, auto loans and mortgages, can positively influence your score when managed responsibly.
New Credit Inquiries: Applying for several new accounts in a short period of time may temporarily lower your score.
Understanding these factors allows you to make informed decisions that support healthier credit habits.
How to Improve Your Credit Score
Improving your credit score doesn’t happen overnight, but consistent habits can make a meaningful difference over time.
Here are some practical steps to help strengthen your credit profile:
Pay Bills on Time: Set reminders or automatic payments to ensure you never miss a due date. Even one late payment can impact your score.
Reduce Outstanding Balances: Paying down existing debt can improve your credit usage ratio and demonstrate responsible borrowing.
Avoid Opening Unnecessary Accounts: Only apply for new credit when you truly need it. Too many applications can signal financial stress to lenders.
Review Your Credit Report Regularly: Checking your credit report helps you spot errors or fraudulent activity that could harm your score.
Be Patient and Consistent: Positive credit behavior over time is key. Responsible use and steady payments gradually build stronger credit.
Monitor Your Credit with SavvyMoney
SCFCU members have access to SavvyMoney, a free credit monitoring tool available through online and mobile banking. SavvyMoney makes it easy to stay informed and proactive about your credit.
With SavvyMoney, you can:
View your credit score at no cost
Receive regular updates and alerts when changes occur
See a breakdown of the factors impacting your score
Access personalized tips to help improve your credit
Monitor your credit without affecting your score
Having access to this information empowers members to see where they’re at, take control of their financial health and make smarter decisions with confidence.
Knowledge Is Power
Your credit score is more than just a number. It’s a tool that can open doors to financial opportunities. By understanding why it matters, taking steps to improve it and using resources like SavvyMoney to stay informed, you can build a stronger financial future.
At SCFCU, supporting members every step of the way includes providing the tools and education needed to succeed. Whether you’re just starting your credit journey or working to improve your score, SCFCU and SavvyMoney are here to help.
Start Monitoring Today
If you haven’t already, log in to your SCFCU online or mobile banking and explore SavvyMoney. Keeping an eye on your credit score is a simple step that can make a big difference, today and for years to come.
Take control of your credit. Take control of your financial future.