Growth & Jobs | JN helps participants cultivate good credit habits

ROSE MILLER, financial education consultant with the JN Foundation, has stressed the need for Jamaicans to cultivate good credit habits, which she says are key to achieving financial freedom.

Miller made the statement while addressing a recent Smarter Credit Workshop organised by the JN Financial Academy, held at the corporate offices of The Jamaica National Group in New Kingston recently and streamed live on the JN Foundation’s YouTube page.

The interactive session, held under the theme ‘Cultivating Good Credit Habits’, emphasised the importance of responsible credit management in the pursuit of long-term financial stability and access to better financial opportunities. Participants were guided through practical steps on how to understand, build, and maintain strong credit scores.

“It’s important because it helps you access better loans and credit opportunities,” she explained. “But not just that, I learnt that if you’re going for a job, employers may actually check your credit score. So, bear that in mind too.”

She outlined five key reasons why Jamaicans should prioritise maintaining good credit. This, she said, includes a solid credit score, which makes it easier to access loans such as mortgages, credit cards, and lines of credit. It also helps individuals secure lower interest rates, saving them thousands of dollars over time.

“Strong credit gives you peace of mind,” she added. “When we manage credit wisely, we avoid late fees, high interest, and debt stress, and that even protects our health. Good credit habits give you confidence that you are in control of your money.”

Also, maintaining good credit contributes to wealth building. However, she cautioned that wealth accumulation is a gradual process.

“Wealth is built over time,” she stressed. “So, if anyone tells you they can make you rich quickly, that should be a red flag for you. Building wealth and good credit both take time, consistency, and discipline.”

Miller outlined several strategies for improving and maintaining a strong credit score, which she described as the “driver of creditworthiness”. Key factors influencing credit scores include payment history, credit utilisation, length of credit history, credit mix, and recent credit applications.

She encouraged participants to implement five steps to maintain creditworthiness:

1. Pay bills on time. Late payments negatively affect credit scores, while consistent on-time payments demonstrate reliability, she explained.

“Automate payments or set reminders,” she advised. “And if you’re in financial difficulty, talk to your lenders. Keeping the lines of communication between you and your lenders open can make a big difference.”

2. Keep credit utilisation between 30 per cent and 40 per cent. Using too much of your available credit can signal financial stress to lenders.

3. Keep old accounts. These will add more time to your credit history and help lenders to more accurately assess your credit behaviour over a longer period of time.

4. Diversify credit types. Managing different forms of credit, such as auto loans, credit cards, or mortgages responsibly can strengthen one’s credit score.

5. Limit enquiries by lenders. Each new loan application requires a credit check. Frequent credit checks by lenders can indicate financial instability and lowers a credit score.

She also reinforced that financial discipline begins with sound planning. “Everything good with finance starts with a budget, whether at the household or the national level. Imagine if the government had no budget, and spending was done in a haphazard way. We wouldn’t think that was okay. So,the same is true for us, it starts with making a financial plan and managing it well.”

More than 300 individuals attended and viewed the workshop with many praising the initiative for its relevance and impact. Jay Beckford, a student at The University of the West Indies, Mona Campus, described the session as highly informative.

“I learnt so much about financial literacy, including the importance of maintaining a good credit score and practical strategies to stay financially responsible,” he said.

Similarly, Kedifa Campbell-Boothe, a collections agent at the Jamaica Public Service Company, said the workshop was both engaging and useful. “It was practical, relatable, and educational. I’m really glad I attended,” she shared.