featured
2025-08-25
Credit Score
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featured
2017-04-24
category
published
3 minutes

Credit 101: Building Your Credit Score

Your credit score is basically your financial reputation. A strong score can help you rent your first apartment, qualify for lower interest rates, and even land your dream job down the road. The earlier you learn how credit works, the easier it will be to build healthy habits that stick for life.

What Goes Into Your Credit Score

Think of your score as a pie made up of five slices:

  • Payment History (35%) – Always pay your bills on time. Even one late payment can hurt.

  • Amount Owed (30%) – Keep balances low on your credit cards. Using more than 30% of your available credit looks risky. This is known as the 30% Rule. 

  • Length of Credit History (15%) – The longer you’ve had accounts open, the better. This is why starting young matters.

  • Credit Mix (10%) – Lenders like to see a healthy variety (credit cards, student loans, maybe even a small auto loan later).

  • New Credit (10%) – Opening too many accounts at once can signal red flags. Be selective.

The 30% Rule

One of the easiest ways to keep your credit score healthy is by following the 30% rule. This rule says you should avoid using more than 30% of your available credit at any given time. For example, if you have a credit card with a $1,000 limit, try to keep your balance under $300. Why? Because lenders view high balances as a sign you might be overextended, even if you’re making payments on time. Keeping your utilization low shows you’re in control of your spending, which helps boost your score and your financial reputation.
 

Steps to Start Building Credit

  1. Check Your Credit Report
    WyHy members can access their credit score for FREE through SavvyMoney in digital banking or the WyHy app. It’s like having a built-in financial coach that helps you see the impact of your credit decisions and plan smarter moves. 

  2. Use Credit Wisely
    If you get a credit card, treat it like training wheels. Use it for small purchases (like gas or groceries) and pay it off in full each month.

  3. Practice Good Habits Early

    • Don’t open too many accounts at once.

    • Pay every bill on time, every time.

    • Review your spending so you don’t get caught off guard.

Starting your credit journey early gives you a head start on financial independence. Whether you’re just getting your first paycheck, opening your first checking account, or applying for your first credit card, every smart move you make now builds a stronger future. Good credit opens doors to opportunities, and learning how to manage it while you’re young means you’ll be ready for whatever comes next.
 
 
 
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