Business Spotlight: Gunnison Bank & Trust offers insights during Credit Education Month

With March being National Credit Education Month, Gunnison Bank & Trust is working to demystify the complexities of credit scores, highlighting how financial literacy serves as a foundation for achieving major life milestones.

Chad Zummach, executive vice president at Gunnison Bank & Trust, noted that understanding credit is about more than just numbers; it is about opportunity. Credit scores play a pivotal role when residents look to qualify for mortgages, secure car loans or even apply for rental housing.

“Credit matters because it is a reflection of financial reliability,” Zummach said. “Key factors like payment history, credit utilization and the length of your credit history all weigh heavily on those big moments, like buying a first home in the Gunnison Valley.”

To help consumers navigate their financial journeys, the bank is addressing common misconceptions that often cause unnecessary stress. One frequent myth is that checking your own credit score will lower it. In reality, personal checks are considered “soft inquiries” and do not impact your rating.

Additionally, Zummach emphasized that consumers do not need to carry a monthly balance or pay interest to build credit. Consistent, on-time payments are the most effective way to strengthen a score. He also cautioned that while it may seem helpful to declutter, closing older accounts can actually lower a score by shortening the average age of credit history.

In an era of increasing digital threats, protecting that hard-earned credit is equally vital. Gunnison Bank & Trust recommends monitoring accounts and credit reports regularly, using strong passwords and enabling two-factor authentication.

For those concerned about potential data compromises, Zummach suggested considering a credit freeze or fraud alert.

“Being proactive is the best defense,” he said.

More information on financial tools and services can be found at gunnisonbank.com. 

Gunnison Bank & Trust is part of the Gunnison Country Times sponsored content program called Spotlight.