In this weeks episode we discuss credit 101.  Specifically why it is important, how you can check your credit score, how you can build it up, and the top Do’s and Don’ts.

Show Notes:

  1. Go to annualcreditreport.com to review your 3 credit reports (Experian, TransUnion, and Equifax) free one time each year.’
  2. Your credit report, and ultimately your credit score, can effect your job, where you live, your insurance costs, and the amount of interest you will pay on your loans. This is worth your time as it could easily save you thousands of dollars over your lifetime and reduce the stressors of everyday life.
  3. Understanding how the credit score is created will help you increase it over time. 
      • Payment history 35%
      • Amounts owed 30%
      • Length of credit history 15%
      • New credit 10%
      • Types of credit used 10%
  4. Two sure ways to increase your credit score involve paying your bills on time and increasing your available credit, while not actually using it.
  5. Work at getting your credit score to 760 to get the best possible interest rates on a loan.
      • No late payments
      • Limit the balance to limit on revolving to 30% or less
      • Minimize credit inquiries
      • Three of more tradelines of varying types
      • Two year history of credit
  6. Learn about all of the benefits of owning and using a credit card. Fraud protection, purchase protection, price protection, extended protection, return protection, auto rental protection, and a cash rebate are a few. Take the time to read your benefits guide the credit card company sent you. Those benefits are free.

Call to Action:

  1. Review your credit reports at Experian, Transunion, and Equifax.
  2. What is your credit score

Resources: