National Get Smart About Credit Day on the third Thursday in October annually promotes learning about good credit. It is a national campaign where volunteer bankers help counsel young people on responsible credit habits.

The importance of sound financial management is something that can and should be taught at a young age. Learning healthy credit habits can be one of the most valuable lessons a young person can learn.

What Affects Credit Scores
  • Amount of debt you carry – Paying off the amount you charge to your credit cards each month helps to improve this amount.  Showing that you are reducing debt each month gradually increases your score over time.
  • Age of credit history – The older your credit history (and the longer it is in good standing) shows a trend toward reliable financial standing.
  • Reports to collections agencies – Any inaccurate reporting to a credit agency needs to be reported immediately.  The sooner you resolve an inaccuracy, the quicker your credit report can be corrected.  Obtain a letter from the collection agency once you have been able to confirm the error and submit it to all the credit reporting agencies.
  • Late payments – Any time make a late payment, especially on a credit card or loan, this will be reflected on your credit report. Pay early, pay on time.  If you use your online banking system to make payments, remember to review your bank’s turn-around-time for payments.  Take their delays into account and schedule accordingly to avoid any late payments.
  • The number of hard inquiries for credit – If you are considering a loan for a car or house, each inquiry will be registered on your credit report.  When your credit is in good standing, it doesn’t have a big impact.
  • The number of accounts – Opening and closing accounts can have an impact on your credit score. Depending on the number of accounts, the impact on your score could be huge.

HOW TO OBSERVE #GetSmartAboutCreditDay

Make sure you are smart about credit. Access tools and resources to help you improve your credit score. Make it a routine to check your credit score and maintain it. Take steps to improve your credit score. Share your experiences and tips using #GetSmartAboutCreditDay to post on social media.

Related observances

Tools like Credit Sesameand CreditKarma can help you not only see your credit score but understand it.  Checking your credit report helps you see what accounts are open, or closed, and the effect it has on your score. There are also simulation tools to help guide you on the right path.

NATIONAL GET SMART ABOUT CREDIT DAY HISTORY

In 2003, the American Bankers Association (ABA) Education Foundation originated this National Day.