Establishing Credit
A good credit score is very important
and impacts an individual’s ability to
obtain better interest rates on loans
and insurance premiums and gain
employment. As a young person begins
to establish credit, a credit card with a
relatively small balance is a good option.
Responsibly managing credit card
accounts is a good indication to other
creditors that you can pay back any
funds borrowed.
Teaching Money Management
Poca Valley Bank’s Student Savings Program
It’s never too early to start saving. That’s why Poca Valley Bank
(PVB) implemented a piggy bank exchange program to encourage
school-age children to start saving money.
It all starts with our little blue pig, Pig Newton. Children are
encouraged to fill their pigs with all quarters if possible. Once a
child fills a Pig Newton bank, they can bring it into the bank and
open a student savings account. Participants are then given a
second, white pig—Pork Chop—to fill and then, lastly, a pink pig—
Penny. When the Penny bank is full, students bring them to the
bank and make a deposit into their savings account.
Are you interested in participating in the student savings program?
Stop by one of PVB’s seven convenient locations—Walton,
Clendenin, Elkview, Sissonville, Poca, Winfield or Spencer.
Our staff would love to assist your child in learning how to save.
1-844-782-2651 | www.pocavalleybank.com
Another way to establish credit is to
consider a cash-secured loan with your
community bank. For example, if you
have $1,500 in a savings account or a
CD, you can borrow funds up to this
amount, securing it with your account.
The bank will place a hold on the funds,
equivalent to the amount of your loan,
and will hold these funds until the loan
is paid in full. A good repayment term
for a loan of this type would be 18-24
months. It is recommended to leave the
loan open for at least 12 months in order
to establish a sound repayment history.
Many times, people believe paying off
a loan early is a good way to increase
your credit score. This may be true if
you have already established a credit
history. However, if you currently do
not have a credit score, the loan should
remain open for a longer time period. A
cash-secured loan is also a good choice
for young borrowers who do not have a
qualified co-signer.
A final recommendation for a younger
individual trying to establish credit is to
form a relationship with a community
bank by opening a checking and savings
account. Many times a loan officer will
review the account history on a checking
account to see how the account is
managed. A review of the checking
account will consist of how long the
account has been open, any overdraft
history and the average account balance.
An account that has been opened for at
least 12 months with no overdraft history
can serve as a credit reference for an
individual trying to obtain a loan.
This material is not intended to provide legal, investment or
financial advice and does not guarantee that Poca Valley
Bank offers or endorses a product or service.