Credit Education Month: Top Credit Myths, Mistakes, and Habits—According to Banking Pros

Every March, Credit Education Month serves as a reminder of just how important it is to understand, manage, and protect your credit. Whether you're building credit for the first time or working to improve your score, the right knowledge can help you reach your financial goals with confidence.

During Credit Education Month, we’re highlighting approachable, practical guidance from leaders across our organization who work closely with customers every day. Their insights reveal a common theme: good credit isn’t built through one-time tricks, but through consistent, informed habits practiced over time.

Credit affects much more than loan approvals. A strong credit profile can help lead to:

·         Lower interest rates on credit cards, home loans, and auto loans

·         Better insurance premiums

·         Easier approval for renting an apartment or setting up utilities

·         Greater financial flexibility when life’s big moments come along

 “A higher credit score means lower interest for life—more savings, more freedom, more possibilities,” says Ty Stetzner, Butte Market President.

Too often, people begin thinking about credit only when they need it. But setting up young adults with responsible credit experiences early may pay off for years. Bert Bartle, Regional President of our Bozeman and Billings markets, encourages families to talk proactively about how credit works and how teens can begin building their history safely.

“Teens should discuss potentially getting added to their parent's credit card, co-signing on a small loan, or getting a secured credit card or secured loan to build credit early if they can,” he said.

Introducing these habits early gives young adults the benefit of time—and time is a powerful element in determining credit strength.

One fundamental truth remains constant: consistent, on‑time payments have the greatest influence on a person’s credit. Bartle describes payment reliability as “simple, but the most important habit.”

Stetzner reinforces the same idea, explaining that paying every bill on time—without exception—is the cornerstone of building or rebuilding credit.

Sometimes, customers may try to improve their credit but unintentionally make choices that work against their goals. Bartle points to balance transfers as a good example. Customers are often lured in by 0% interest offers, but the long-term effect may be harmful for long term credit building.

 “Balance transfers from one credit card to another to get the 0% interest benefit only results in a closed credit card with limited history and a new credit card profile with no repayment history. This process doesn't allow the credit history on older cards to develop and could potentially negatively affect credit instead of improving it,” Bartle said. “It may save you some money on interest, but may not support your credit profile in a positive way.”

Short-term savings don’t always translate into better credit, especially if an older account with valuable history gets closed in the process.

Credit scores don’t tell the whole story. Relationships matter too. That’s why Bartle encourages customers to stay connected with their financial institutions before they need assistance. As he puts it, “Build a relationship with your bank and other creditors before you need credit if you can.”

When a banker knows your history, they can help find solutions tailored to your situation.

Credit Education Month is the perfect time to get informed, and take control of your financial story, and Opportunity Bank is here to help support you every step of the way.

For more helpful resources, FAQs, and more, visit our Credit Education webpage atopportunitybank.com/credit-wellness.