EDUCATION • GOVERNMENT • HEALTHCARE/MEDICAL HOSPITALITY • MULTI FAMILY • PROFESSIONAL SPACES RELIGIOUS FACILITIES • RETAIL • TRANSPORTATION • AND MORE! Trusted Partner for Flooring Solutions in Texas Since 1974 Over 50 Years of Excellence (281) 598-6001 | 5510 Brittmoore Rd., Houston, TX 77041 | www.mekfloors.com agchouston.org Spring2026Cornerstone13 It also directly impacts credit scores. A lower score often translates into higher borrowing costs, fewer housing options near project sites, difficulty securing reliable transportation and limited access to emergency funds when weather delays or project slowdowns occur. Credit scores ultimately deter- mine who can borrow affordably and who pays a premium. Understanding how credit works — and where common mistakes occur — enables employers to better support the financial stability of their workforce. Credit scores are influenced by several factors, with payment history, amounts owed and length of credit his- tory carrying the greatest weight. Payment history accounts for roughly 35% of a credit score. Consistently pay- ing bills on time demonstrates reliability to lenders. Even one payment that is 30 days late can significantly reduce a score. In construction, where overtime fluctuates and income timing may shift with project schedules, missed payments are often a cash flow issue rather than irresponsibility. Encouraging budgeting tools or automated payment systems can help prevent avoidable setbacks. The second largest factor, accounting for roughly 30% of a credit score, is credit utilization, or the amount owed relative to available credit. A worker with a $5,000 credit limit carrying a $4,000 balance is using 80% of available credit, a level that signals elevated risk. Individuals with strong credit profiles typically keep utilization below 30% and often closer to 10%. High utilization can lead to lower scores and higher bor- rowing costs, which quickly compounds financial pressure for employees who rely on vehicles, tools or personal credit to remain employed. Length of credit history makes up approximately 15% of a score and reflects how long someone has managed credit. Younger workers or those new to the industry may lack an established profile, limiting financial flexibility early in their careers. Common mistakes such as maxing out credit cards during slower periods, missing payments due to income timing issues, applying for multiple lines of credit at once or ignoring credit report inaccuracies can deepen financial strain. Over time, these issues often lead to higher interest costs, extended repay- ment terms and added financial pres- sure — all of which can affect workforce performance and stability. For employers, financially stressed employees may be more likely to expe- rience distraction on the job, seek wage increases to offset debt burdens, delay retirement savings plan participation or pursue short-term opportunities for immediate relief. Supporting financial wellness initiatives — through educa- tion, retirement plan engagement or access to reputable financial counseling — can strengthen retention and build a more resilient workforce. Managing debt is an individual responsibility, but companies can play a meaningful role in fostering financial stability. In an industry built on long- term planning, capital management and risk mitigation, workforce finan- cial health deserves the same strategic attention. AGC Select Chapters 401(k) partic- ipants have access to one-on-one debt counseling and personalized budget- ing and spending plans with certified financial counselors through Green- Path Credit and Debt Services. If you have questions related to this article or would like to discuss financial education initiatives for your workforce, please contact Ellsworth Fair Wealth Manage- ment Group of RBC at 281-753-8653 or [email protected]. DISCLOSURES: The information contained herein has been derived from sources believed to be reliable, but no representation or warranty, express or implied, is made by RBC Wealth Management, its affiliates, or any other person as to its accuracy, completeness, or correctness. All opinions and estimates constitute the author’s judgment as of the date of this publication, are subject to change Supporting financial wellness initiatives can strengthen retention and build a more resilient workforce.
