As your local community bank for more than 130 years, Clear Mountain Bank has helped our customers and communities during many challenges and uncertain times.
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Stepping Into the World of Credit
Welcome to adulthood! Along with gaining more independence (and maybe your own Netflix account), you’re also stepping into the world of credit – a big word that will play a significant role in your adult life.
But don’t worry – we’ve got your back! At Clear Mountain Bank, we believe financial education should be clear, practical, and empowering. Read this article for a short crash course on what credit is, how it works, and how to start building it the correct way.
First Things First: What is Credit?
As noted by Investopedia, credit is a contractual agreement where a borrower receives a sum of money or something else of value and commits to repay the lender later, typically with interest (a fee paid or owed on a specific amount).
Credit is also referred to as the creditworthiness or credit history of an individual or a company. When you have good credit, that tells lenders that you are trustworthy, which they can see from looking at your credit history.
In other words, you are considered reliable because you consistently pay toward your debts. Having good credit is essential when trying to get approved for loans, such as mortgages, and securing the best possible interest rates on them.
Credit Score? What is it?
Your credit score is a three-digit number, typically ranging from 300 to 850, that lenders use to assess your creditworthiness.
These scores are considered using factors such as:
Want to understand more about your credit score? Check out Clear Mountain Bank's Credit Sense service
Why is it Important to Build Credit Early?
The sooner one starts building credit, the longer their online history will be. Why is this good? It can help pave the way for lower interest rates on loans, qualify you for your first home, buy your first car, get better cell phone and utility deals, and overall ensure your future is as secure as possible.
We're Here to Help
At Clear Mountain Bank, we offer a variety of credit products, personalized guidance, and complimentary tools to help you track your credit journey. Whether you’re getting your first card or are planning for the future, we’re here to make it clear.
Have more questions?
Call (304) 379-2265 to speak to one of our trusted and highly educated leaders now!
