Do you know where you stand with your credit? If you don’t then I challenge you to find out today. I promise you the companies you owe will not jump out of the screen and handcuff you. Trust me it’s a scary feeling. I know. I’ve been there. But the first step to fixing or building your credit is to know where you stand. Many people pay other people to do it for them but I promise you that you can do it yourself just like I did. All you have to do is read and make the phone calls. First of all, most lenders use FICO scores. Many credit monitoring places use their own module and that score is not accurate. It is only for educational purposes to give you an idea of where you stand. What you need to do is pull your free report from ALL THREE BUREAUS. They are free at annualcreditreport.com I encourage you to pay for the scores from each bureau. It’s about $7 each. You spend that on frivolous things everyday. I know you do. You need a clear idea in your head of where you are and where you want to be with each bureaus. The report will not give you a concrete idea of your score. I used to use credit monitoring services but I rather not anymore. Also many credit cards offer you the FICO score monthly as a benefit on your card. Amex, Chase and Citicards have it, if you have any of those.
Here is what your FICO score consist of and will also be negatively impacted if you have collections or judgements on your report. Of course paying on time is a no brainer. The amount you owe is MAJOR! And a lot of people do not understand this formula so I will explain it to you. Some people will tell you that you need to stay under 50% of your limit but times have changed and the grading is much harder now and I read that 30% is your safest bet. This means. If you have a $500 limit, your balance needs to be under $150. If you have a $1000 limit, your balance needs to be under $300. If you have a $10,000 limit, your balance should be under $3000… Monthly. Plenty of people live off of their credit cards. I did for years. So this is not ideal but this should be your GOAL. When you get declined for a card and it says your debt to limit ratio is too high on other cards. This is what they’re talking about. They’re saying that your other cards are maxed out and you are only paying minimum payment on them so why would we give you more money to get $30 a month back? ?. Length of credit history. Try not to close cards. You need to show that you have had opened cards with low balances for years. They don’t trust young accounts of 3 years or less yet. Don’t apply too often for things. And lastly the types of credit you have is important. A bunch of store cards is trash. When I was 19 I had 12 store cards. Card to dumb ass places too. Don’t do that. You honestly don’t need a store card at all if you have regular credit cards but if you want the reward program they have then pic one or two of your favorite or most visited and that’s IT. Do not apply everywhere. Unless it’s for a BIG purchase and they are offering 0% APR for a year MINIMUM. Like Tournaeu for when you buy me my Rolex for me helping to fix your life. ☺️. Student loans aren’t a big deal on your credit as long as they’re in good standing. Auto loans, mortgage loans, installment loans and revolving account (credit cards) are most important. Collections and judgement will affect your score. You should absolutely tackle them. I honestly don’t think evictions affect your score but I’m not positive.
