What is Included in My Credit Score?

A credit score is a number, typically between 300 and 850, that determines whether a lender should grant you credit. The average American has a credit score of 705. It is comprised of a variety of different factors and activities. You can increase or decrease your score depending on your financial habits. Below, we break down the various components of your credit score and their importance to your financial health.

Open Accounts 

The type and number of accounts that you have open can impact your credit score. These accounts include credit cards, mortgages, and other loans like car loans. If you open a new account, it may lower your score as an inquiry will be put on it by the credit card company or bank. Meanwhile, having a long history of credit with an individual account can help to increase your score. 

Timely Payments

Making timely payments on your credit cards and loans can help you to increase your credit score. However, if you miss a payment or are late, your score can decrease significantly, especially if your account goes into collections. To help you make your payments on time and maintain your credit score, consider using online banking with auto-pay options to pay your bills. These tools allow you to schedule payments ahead of time, so you don’t have to worry about them.

Amount of Available Credit Used

Your credit card typically has a limit, which is how much money you have available to make purchases using that card. While you cannot overstep this limit, how much of it you use can impact your credit score. To maintain a positive credit score, it is recommended that you only use 30% of the credit available to you. For example, if you have a credit card with a $10,000 limit, you should not use more than $3,000 of it.

Collections

You know that you should pay your bills on time. However, you also know that life happens, and sometimes you may fall behind on payments. If any of your accounts go to collections, it can negatively affect your credit score. In this situation, you should try to pay off these accounts in order to improve your credit score. Your lender or collection agency can work with you on an alternative payment plan that works with your budget and life circumstances.

Outstanding Debt

Making up 30% of your credit score, outstanding debt is a major component in determining your creditworthiness. If you have multiple loans and other debts, it can negatively impact your credit score. Making timely payments on these accounts or paying them off entirely can improve your score. 

Credit History

The length of your credit history and the overall age of your accounts can impact your credit score. Over time, your score changes depending on your existing debts and open accounts. Having about seven years of credit history can help you establish a good score. Most negative records, like missed payments and collections, tend to fall off of your credit report around that time. 

Where Can I Find My Credit Score? 

While you may know what a credit score is, you may not know where to get it or how you can best use it to your advantage. You are entitled by law to one free credit report per year from major reporting agencies like Experian, Equifax, and TransUnion. 

In the meantime, online banking tools and credit cards can also offer an estimated credit score based on your payment history and other financial habits. Your personal banker can help you to obtain this report and take action based on the results. 

Grow Your Credit Score with Citizens Bank

If you want to grow your credit score, Citizens Bank offers a variety of tools to help you do that, such as credit cards and personal loans. Our personal bankers will work with you to get the credit you need and manage your finances. To get started, contact us online, call us at (256) 681-9181, or visit one of our branches in Nashville or Memphis.

Increase Your Credit Score in Tennessee at Citizens Bank

At Citizens Bank, we want to support our members in managing their finances. One way we do this is through a variety of credit-building services like loans and credit cards. To learn more, contact us online, call us at (256) 681-9181, or visit one of our branches in Nashville or Memphis.

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What Banking Services Does My Business Need?

Much like you use several different banking services like checking accounts and credit cards as an individual, your business has equally complex financial needs. Below are some banking services your business will need to succeed. 

Business Checking Account

To manage your cash flow, you need a checking account for your business. Various types of accounts are available depending on where you are in your entrepreneurial journey. Your checking account provides a register of all transactions that occur within your business, even those using your business debit card. 

Online Banking 

Regardless of which type of business checking account you choose, it is recommended that you use online banking for optimal convenience and security. As a busy entrepreneur, you won’t need to worry about making it to your local branch during business hours, as online banking platforms are available 24/7. 

You can even access your business account through your smartphone using mobile banking apps. If you would like to take advantage of this service, your business banker can help you establish your online banking account. This is particularly helpful if multiple employees will need access to your business bank account. 

Business Savings 

Once you are earning revenue, you want to be able to invest some of that money back into your business to help it grow even more. Along with traditional savings accounts, you can use tools like money markets and certificates of deposit (CDs) to grow your business. These solutions are ideal for small business owners who may be using some of their own money to fuel their business growth. 

Business Lending

Purchasing tools or property for your business can sometimes require that you take out a loan. You should choose a bank that provides business loans to help you obtain these assets. These loans can also be helpful for those investing in real estate who want to take advantage of the benefits they offer over traditional mortgages. 

Business Credit Cards

Credit cards provide greater convenience and security than cash or checks for business transactions. Using a credit card can help you track business-related spending, monitor cash flow, and prepare to pay taxes. If your business has multiple employees, you can provide them with credit cards to save time on expensing.

Fraud Protection 

Both businesses and individuals are susceptible to fraud today. Your bank can be your partner in preventing and mitigating fraud. With monitoring features on credit cards and online banking platforms, you can know when any suspicious activity has occurred on your business accounts. You also have the support of your bank or credit card company if fraud occurs, along with resources to learn how to prevent it. 

Start Your Business Banking Journey with Citizens Bank

If you’re a new business owner, you may not know where to start. The business bankers at Citizens Bank can help you navigate this portion of your entrepreneurial journey. To get started, contact us online, call us at (256) 681-9181, or visit one of our branches in Nashville or Memphis.

Open Your Business Bank Account in Tennessee at Citizens Bank

At Citizens Bank, we support business owners in Tennessee by offering a full line of business banking services. To open a new business bank account or apply for one of our business credit cards, contact us online, call us at (256) 681-9181, or visit one of our branches in Nashville or Memphis.

The post Banking Considerations When Starting a Business appeared first on Citizens Savings Bank and Trust Company.

The Benefits of Online Banking

Due to its convenience, nearly 80% of Americans now prefer to use online banking. While you may know that online banking is more convenient than visiting a branch in person, you may not know about the other benefits this service offers. 

1. Access Your Account Anytime

If your personal schedule doesn’t allow you to visit your bank during its regular business hours, you can still access your account online 24/7. If you’re not near your computer, no problem. Many banks, including Citizens, have apps you can use to access your account on your smartphone. You can even deposit money into your account using mobile deposit capture features.

2. Pay Bills Online

Paying bills can be a hassle, but it doesn’t have to be. Many online banking platforms include an integrated bill-pay feature, internal and external transfers, and loan payment options. You no longer have to spend time and money on postage and writing checks to pay your bills. 

3. Track Your Finances

Online banking also makes it easy to manage your budget. Along with providing a real-time register of your transactions, tools to monitor financial health, like Citizens Bank’s MoneyTracker, included in your online banking platform make budgeting easy. This, in turn, gives you greater control over your spending and helps you to reach your financial goals faster.

How to Bank Online Securely

One common concern bank members have about online banking is security. Banks, like Citizens, have responded to this concern by implementing a variety of features into their online banking platforms to protect users and their information. Using these features and practicing wise personal security habits make online banking a safe experience for all users. 

1. Secure Money Transferring

When using online banking to pay bills or send money to friends or family, you may be concerned about how it will reach its destination. ACH transfers and P2P payments allow for secure and convenient payment processing. With these features, you can securely transfer money to any business or personal account.

2. Multi-Factor Authentication

Who can access your bank account is one of the most important things to consider regarding its security. That’s why we recommend that our members set up multi-factor authentication (MFA) on all of their online banking accounts. This can be done using a PIN number or code texted to your phone. By adding layers to authenticate your identity when you log on, MFA strengthens security measures. 

3. Unusual Activity Alerts

Many online banking platforms monitor fraud and other unusual activity on your bank or credit card account. When this type of activity is detected, it sends an alert to your phone or email. However, you do need to make sure that this is enabled on your account for it to work. If you receive such an alert, contact Citizens Bank to resolve the issue as soon as possible. 

Bank From Anywhere

Online and mobile banking can be a convenient, secure way to access your bank account from anywhere in the world. If you would like to start using online banking, contact Citizens Bank. Our experienced personal and business bankers can help you set up your account and answer any questions you may have.

Sign Up for Online Banking at Citizens Bank in Tennessee

Start enjoying the convenience and security that online banking can offer with Citizens Bank. We can help you set up your account and provide you with the resources to manage your finances. Contact us online, call us at (256) 681-9181, or visit one of our branches in Nashville or Memphis to get started today! 

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