First National Bank USA is offering tips to help customers plan for their financial future by establishing and maintaining good credit habits for financial wellness and prosperity.

“Demonstrating sound money management principles as you plan your financial future not only builds good credit, but is essential to establishing financial independence,” said Robert Laiche, senior vice president of First National Bank USA. “Your local banker can work with you to develop a budget that reflects your short- and long-term financial goals to help avoid financial pitfalls and set you up for financial success.”

First National Bank USA offers the following tips to help build and sustain good credit:

• Open a checking account and keep track of your balance to help establish a credit history.
• Use debit and credit cards for convenience and safety, but don’t overspend or miss payments, which will negatively affect your credit score.
• Build a long credit history by avoiding closing out your older established credit cards.
• Even if the card has a zero balance, use it every so often then pay if off when the bill comes in. This will continue the life of the card and prevent the creditor from closing out the account for inactivity.
• Watch your credit limits on revolving lines and try to keep the usage below 30% on each individual account.
• Be cautious about new applications. Do not be tempted by the rewards, discounts, and free stuff. Watch high interest rates, annual fees, and penalties.
• Develop a mix of credit (such as a revolving credit line and an installment loan) to demonstrate your proficiency managing several types of credit.
• Show stability in the three to six months before a major purchase. Avoid opening or closing accounts or moving large amounts of money around.
• Build an emergency fund equal to at least six months of living expenses to help absorb unexpected expenses and avoid penalties and fees for missed or delinquent payments.
• Alter your credit focus as you approach different life stages. While Gen Z might be saving for a down payment, Gen Xers or baby boomers may be paying down debt or planning for retirement, respectively.
• Monitor your credit to correct any errors and detect potential signs of identity theft. Order your credit report annually from www.annualcreditreport.com.

“Establishing good spending and saving habits early can help maximize your available funds and help you recover from temporary financial roadblocks,”  Laiche said. “Reach out to your local banker for sound financial advice as you navigate pivotal financial milestones and plan for the future.”

For more information on how First National Bank USA can support good credit building practices, visit us at www.fnbusa.com or contact us at (985) 653-7632.