Quick answer, when it comes to money and next leveling your money, EVERYTHING!
Having a good to excellent credit score is as valuable as gold since it can LIT-ER-AH-LLY keep more money in your pocket! Here are A few quick credit tips I shared from this month’s Credit workshop. They all seem easy enough … in theory, the key is to correctly implement these tips to your personal credit management to really see the big credit payoff.
First, let me back up and say that your credit score is like a badge of honor or dishonor in the money game. Whether you want it to or not, it follows you and your money and can be the only deciding factor on important money situations you will encounter. So, the sooner you level up your credit and keep it bright and shiny, the sooner you will feel better about yourself, and the faster you can start next leveling your money.
Since I am passionate about educating others about money, this post will share some information about credit that will make a huge impact on how you turn your credit score around or better yet keep your credit strong and as a leveraging tool as you work towards building up your assets.
First, let’s define what credit is and what it isn’t. Credit is how much you are able to borrow now, and payback at a later date. It is directly connected to your worthiness to borrow. What it is not, is free money! It requires repayment with interest that compounds over time until the whole amount you owe is zeroed out.
Let’s break down some important information when it comes to your credit score.
FICO Credit Scores Range from 350-850 and there are 3 major Credit Reporting Agencies
- TransUnion
- Equifax
- Experian
In order to calculate your true credit score, look at all of your 3 scores from the reporting agencies above. Your true credit score is not the highest score or the lowest, it is the middle score. And when you are working towards repairing or strengthening your score set your goal towards an excellent score of 740 and above.
You can’t aim for an excellent score unless you know the mechanics behind how your score is calculated.
Understand what is behind your credit score can help you to strategically take action towards upping your score with bigger payoffs and in shorter time frames. So let’s unravel the mystery behind your score together with the information and graph included below.
* Payment History 35%
* Amount Owed 30%
* Length Of Credit History 15%
* New Credit 10%
* Types Of Credit 10%
Want the Cliff notes version of how you can make huge impacts on your score in a shorter amount of time?
Keep it simple, make your payments on time, keep the amount you owe less than 30% of your max credit limit, and general practice don’t close any credit lines that you have opened to have a lengthy credit history.
Start your journey towards excellent credit today! It will be a gift that keeps on giving and you will see continuous returns in your life. Have questions about your personal credit situation? Go ahead and schedule a complimentary consultation today —> HERE and start making some customized credit moves for yourself.