By Aaron Allen, The Seattle Medium
Finances FYI Presented by JPMorgan Chase
Good credit doesn’t just open doors—it can create a pathway to a brighter financial future. For Quincy Crawford, Branch Manager at JPMorgan Chase, this is more than a saying; it’s a foundation for achieving life’s major milestones, from owning a home to launching a business.
“Your credit score is one of the first pieces of information lenders review before approving you for a mortgage, business loan, or other purchases requiring financing,” Crawford said. “A strong credit history could help position you as a more trustworthy borrower.”
In an interview with The Portland Medium, Crawford emphasizes the importance of developing good financial habits, comparing credit-building to maintaining hygiene. By consistently practicing responsible financial behaviors and addressing past mistakes, individuals can steadily improve their credit health.
“Think of building your credit like practicing good hygiene,” Crawford explained. “The better your financial habits, the better your credit can be over time.”
To help individuals establish and maintain strong credit, Crawford shared nine essential tips for improving credit health.
Start with Awareness
Understanding your current credit situation is the first step to improvement. Crawford recommends regularly reviewing your credit reports to spot any errors or issues that may be affecting your score.
“Check your credit reports,” Crawford advised. “Reviewing your credit report is the first step in finding information that may be affecting your score. You have a credit report with the three major bureaus. You can access your Experian credit report for free with Chase Credit Journey®.”
Equally important is staying aware of your credit score, which plays a significant role in determining loan approvals and interest rates.
“This three-digit number can be key to your lender’s decision and helps determine the interest rate offer you’ll receive,” Crawford said. “With a higher credit score, you may be able to lower your interest rate. Keep in mind, credit scores are just one of the many factors considered.”
According to Crawford, there are five key factors influence credit scores: payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%), and types of credit used (10%).
Address Delinquencies
If your credit report shows past due accounts, collections, or judgments, Crawford recommends taking steps to bring those accounts current or pay them off when possible. Addressing these issues can significantly improve your credit over time.
“Bring any delinquent accounts current, or work to pay them off when you are able,” Crawford said. “Every on-time payment is important as it helps demonstrate good financial behavior. It also takes time to rebuild your credit score after delinquencies and late payments.”
Crawford also advises against applying for multiple lines of credit in a short period. “Because hard inquiries can also affect your credit score, try to avoid applying for multiple lines of credit in a short period of time,” he said. “Hard inquiries will appear on your report for two years.”
Build and Protect Your Credit
Once your credit is on the right track, maintaining good habits is key. Crawford shared additional strategies to strengthen and protect credit:
• Know your debt-to-income ratio (DTI): This is the percentage of your monthly income that goes toward paying debts. Keeping your DTI low shows lenders you’re likely able to manage loan payments.
• Keep balances low: Paying off revolving loans each month helps improve payment history and lowers the total amount owed.
“Try to keep your balances at or below 30% of your credit limit to help your credit score,” Crawford said.
• Keep accounts open: Closing accounts reduces your available credit, which can increase the percentage of credit in use and harm your score. Borrowers who have credit available but don’t use it all—or pay it off regularly—appear more credible to lenders.
• Avoid overextending yourself: Staying within your budget prevents taking on debt you can’t repay. This reduces the risk of missed payments, which can harm your credit.
The Journey to Good Credit
Building strong credit is a gradual process that requires patience and consistency. Crawford acknowledged that it takes time for derogatory marks to fall off your credit report, but steady effort can lead to significant improvement.
“It’s certainly a gradual process,” Crawford said. “It does take time for derogatory marks to disappear from your credit report, but there are steps you can take now to start improving your credit score.”
He likened credit-building to other healthy routines: the sooner you start, the easier it becomes to maintain.
“Once you’ve started, it can be easier to maintain,” Crawford said. “You’ll be on your way to establishing really great credit hygiene, and it’ll put you in solid financial health. I’ll also say that it’s never too late—and it’s never too early—to build or improve your credit score.”
Crawford’s final piece of advice underscores the importance of persistence and discipline in the journey to financial health.
“It’s really a journey that requires consistent effort, patience, and discipline,” he said. “But you’ll see steady progress over time simply by sticking with the plan.”
Finances FYI is presented by JPMorgan Chase. JPMorgan Chase is making a $30 billion commitment over the next five years to address some of the largest drivers of the racial wealth divide.