Credit scores affect nearly every major financial decision, yet many people are unsure how they work or how to improve them.
Community Impact spoke with Carlin Friar, president of The Bank and Trust Boerne, about credit scores, common mistakes to avoid and how a community bank can support healthy financial habits.
What is a credit score, and how does someone start building one?
Friar: Many people don’t realize you’re not born with a credit score—you have to earn one. The main point of a credit score is to establish that you will make your payments on time.
One of the safest ways to start is with a small secured loan backed by your savings or a certificate of deposit. Make regular monthly payments, and on-time payments help you build a positive credit history. Over time, that history becomes what lenders look at for a car loan or mortgage.
How does a credit score affect someone’s financial future?
Friar: Your credit score lasts a lifetime and affects the interest rates for major purchases. It may not seem important when you’re young, but when buying a home, a strong or weak score can mean paying hundreds more monthly. Learning about credit early helps people make smarter decisions and avoid unnecessary expenses.
What common mistakes negatively impact credit scores?
Friar: Credit cards are the biggest factor I see. Carrying large balances and only making minimum payments can hurt your score even if you’re paying on time. Using too much of your available credit tells lenders you might be overextended. I encourage people to pay off their credit cards every month if they can and avoid relying on revolving debt.
Check your credit report yearly for errors or unfamiliar accounts, as they can lower your score long term if not addressed.
How can a relationship with a community bank help customers manage their credit more effectively?
Friar: Community banking is about relationships and accessibility. We know our customers when they walk in, making it easier for them to reach out when something goes wrong or they have questions. If someone accidentally overdrafts or double pays a bill and gets worried, they can call me directly to discuss options before it becomes a bigger problem. That personal support can prevent small issues from turning into missed payments or damaged credit.
How do modern banking tools help customers manage payments and protect their credit?
Friar: Our online and mobile banking tools let customers see their transactions in real time and set up alerts for low balances, large transactions or upcoming payments. You can check pending and overnight posted transactions to ensure everything looks right. That visibility helps avoid overdrafts and missed bills, which can quickly hurt your credit score. Technology makes it easier to stay organized, and combined with personal service, it helps customers control their finances.
What is the most important thing to remember about credit and banking?
Friar: In the end, it comes down to consistency. Make payments on time, keep your debt manageable and stay aware of your accounts. With a supportive bank, building and maintaining good credit doesn’t have to feel overwhelming.
Ready to get started?
Here are a few simple ways to experience The Bank and Trust difference:
- Visit the Boerne branch at 118 W. Bandera Road.
- Call 830-443-5437 to speak with a team member.
- Learn more by visiting www.thebankandtrust.bank.
The above story was produced by Community Impact’s Multi Platform Journalist Chloe Chapel, with information solely provided by the local business as part of its “sponsored content” purchase through our advertising team.