I’ll tell you everything you need to know to have a high credit score. Having a great credit score saves you a lot of money. Lower interest rates and better terms when using debt correctly.
The ideal credit score is 760. This lets you get the best credit cards, car loans, mortgage rates, business loans, and more. (NOTE: We’ll get into Business Credit in another email)
FICO Scoring
Let’s first look at the breakdown that FICO uses to assess your score and the score ranking:
580-669 = Fair
670-739 = Good
740-799 = Very Good
800-850 = Exceptional
FICO Formula
FICO assesses your score with a formula. Although they share this with no one, they do share the pieces that go into it and the weight of each item or importance when calculating your credit score.
35% On-Time Payment
30% Credit Utilization
15% Age of Credit
10% Types of Credit
10% Hard Inquiries
The top priority in getting your score up is to make sure you are using only 30% of your credit. For example, if you have $10,000 in revolving credit (credit cards, store cards, things that have a limit) you should only be using $3,000 max of it. The good thing is, that it is not for each card but as a whole but you should aim to have all revolving credit at 30% usage. This really bumps your score up a lot.
Judgments/Collections/Late
Next any judgments, collections, or late accounts you need to settle them and ask them if they will remove the late payments. You also need to go to each credit bureau and start disputes, this will give you free access to your credit report to see if anything old, not yours, or something you’ve already taken care of is still showing negative. Then you open a dispute right online and get them to remove it.
TIP TO RAISE IT FAST
These two things will cause your score to rise up a lot. If you are above 650 with no collection nor judgments then open a new card (don’t use it, don’t go into deeper trouble) but open it to get your credit limit higher to lower your Utilization and increase your score.
How I Can Help You
I’m working on a course that will walk you through all of this step by step and even show you how to settle your credit card debt for as much as 60% off or .40 cents on the dollar. I’ll coach you through how to make the calls and what to say. It’ll save you thousands of $$. Plus, we’ll go into great detail to get your score up and other tricks and hacks to get it up.
I hope this helped you learn more about how FICO determines your Credit Score. Knowledge is power. Changing your money blueprint and arming yourself with wisdom helps you navigate the jungle of life and understand how to work it to your advantage ethically and legally.