Optimal Living Magazine Fit, Fabulous & Full of Faith Issue

By Kelly Long
5
Harvest Matters
Simple Ways to
Increase Your
Credit Score
Happy New Year! One great
way to get started is by understanding
what your credit score
is and what it means for
you. For many people, without
an attractive score, usually ranging
from 650 or greater, you are
forbidden in most cases to make
certain purchases (unless you
have all the cash necessary, of
course). In some cases, people
have even been denied job opportunities
and lost jobs because
of their low credit scores.
The beginning
of the year is
the perfect
time to get
your financial
house in order.
Nevertheless, being “credible” is simply a matter of positioning
yourself for wealth building opportunities. In 5 simple steps, I
am going to help you master and take charge of your credit
score. Whether you are trying to establish or reestablish your
credit score to purchase a home, a new vehicle, or to acquire
a loan for a new business venture, I’m going to share with you
some simple and powerful tips that can increase your FICO
score to obtain your financial goals.
Before you endeavor to take advantage of the tips listed
below, be sure to obtain your credit report and scores. A few
websites to consider are: www.creditkarma.com,
www.annualcreditreport.com, and myfico.com.
5 Simple Ways to Increase Your Credit Score
Correct All Errors. Errors
1
can be found in 80% of all credit
reports. It is your duty to review your report and check for
errors. By law, you have the right to challenge any error that is
on your report. If your dispute proves to be true, then the law
requires the bureaus remove the error, which in turn will
increase your score.
For a free credit consultation and more
information about how to
restore your credit
A PLUS CREDIT REPAIR SOLUTIONS
800-839-0848
Pay Your Bills On Time. Most people know this, but have no
clue how serious this first point
2
is, so let me give you an example.
Let’s say your credit score was a 700 and you had a mortgage
or credit card that you were paying on successfully for 10
years without ever being late. But one month you just so happen
to miss a payment because of some hardship. I can guarantee
that your score of 700 would have dropped by 50-70
points because of that one missed 30-day payment. Now imagine
what would happen if you missed two or more payments?
Enough said. Make the intended effort to pay your bills
on time in 2014!
Keep all balances low. Whether you have remaining balances
on your store cards, credit cards, and/or installment loans,
your goal should always be to
3
pay them off to zero. You may
have heard that keeping a low balance on your credit cards
have a positive effect, but I would challenge that and say no,
not at all. The less debt you are carrying, the higher your credit
score will prove to be. So if you have a card with a zero
balance, surely that’s better than having a card with a 10%
balance remaining. NOTE: 30% percent of your score is the
amount owed on all cards and accounts.
Types of credit in use. The types of accounts you have
established determines 15% of your credit score on your report.
What I mean by types
4
of credit in use is simply a diversity
of accounts. You will have to establish an installment account,
such as a car loan, or a borrowed loan from a banking institution
while managing several credit cards (two or three credit
cards, at least two). As you pay on these accounts over time,
without being late, your scores will gradually increase.
Don’t ever close existing accounts. You should never look
to close out existing accounts, especially if you had a very positive
history with the creditor.
5
Closing out your existing accounts
because you are no longer using them could impact
your score negatively. I highly recommend keeping those
cards open. Another reason for keeping the cards open and
active is simply due to the history behind the cards. The longer
the history behind the card, the more positive effect the
account will have on your score.
In conclusion, if you follow these 5 simple and powerful steps,
you will almost immediately see an increase in your overall
FICO score. Some would have you think that fixing your credit
score is next to impossible, but I would say it’s simply a matter
of taking the initiative to follow the guidelines above and maintain
a consistent and good history for all established accounts.
After all, you were created to “be the lender, not the borrower”.
Winter 2017 Optimal Living 5