Everything You Need to Know About Credit Scores

Here is Everything You Need To Know About Your Credit Score, History, Reports, and More! If you are trying to find ways to increase your credit score or are building it from scratch you should know any changes you make that impact your credit take time to reflect on your credit history report. CREDIT is a COMPLICATED topic, which takes TIME (days, months, years…) to fix or reflect changes when it comes to your credit scores, history, reports, etc…

So, If you are trying to fix your credit, don’t wait until you are ready to buy something to do it START NOW! But don’t worry this is all about how to manage your credit score my ultimate guide of tips, tricks, tools, and resources to skyrocket your credit score!

Credit Score & History Basics

Your credit score can impact the Interest Rates, and Loan Terms Offered to you, as well as, whether or not you have to provide additional income verification. However, the lender reserves the right to require income verification on any loan application.

You need to Know your Credit Score and history! Also, note that having a GREAT Credit Score DOES NOT mean you’ll automatically qualify for financing opportunities either! BUT Before you try applying for any, you should already have an idea of what the outcome will be! Especially if you read through this guide and follow ALL the steps I’m telling you to follow!

Let’s dive into:

What is a “Credit Score”
Why your Credit Score is important
Things that impact your credit score
Ways To Raise Your Credit Score
How To Manage Your Credit Score

What is a “Credit Score”

A credit score is a numerical representation of an individual’s creditworthiness and is used by lenders, such as banks and credit card companies, to assess the risk of lending money or extending credit to that individual.

FICO scores range from 300 to 850. Equifax, TransUnion, and Experian are the most frequently used Credit Bureaus. But there are lots of 3rd Party Companies with Websites and Apps to help you keep track of your credit score i.e. CreditKarma

Factors used to calculate your credit score include repayment history, types of loans, length of credit history, debt utilization, whether you’ve applied for new accounts, and more…

Why your Credit Score is important

Did you know your Credit Score could be what’s holding you back from reaching your financial goals in life? YES, your credit score could OPEN new doors for you (but it can also close them for the next 7 years if you make the wrong moves too)!

If you don’t know why having an Excellent, vs Good, Bad, or Poor Credit Score should be a concern for you your credit score is important because it can impact: Loan Approvals, Interest Rates, Credit Card Approval, and Limits, Renting a Home or Apartment, Insurance Premiums, Employment Opportunities, Utility Deposits, Security Deposits for Services, Financial Opportunities, Your Financial Health Overall, and more…

Here are some reasons why a credit score is important:

Loan Approval
Interest Rates
Credit Card Approval and Limits
Renting a Home or Apartment
Insurance Premiums
Employment Opportunities
Utility Deposits
Security Deposits for Services
Financial Opportunities
Financial Health

In summary, a credit score plays a crucial role in various financial aspects of an individual’s life, affecting their ability to borrow, the cost of borrowing, and even certain non-financial aspects such as renting a home or securing certain jobs. Individuals need to be aware of their credit score and take steps to maintain or improve it over time.

Things that impact your credit score:

Several factors influence your credit score, and understanding them can help you manage and improve your creditworthiness. The exact weight and importance of each factor may vary slightly depending on the credit scoring model. (For instance, Equifax might say your score as 690 and Transunion might report it as a 730 or Vice Versa).

But, generally, no matter what the following factors play a significant role. Things like your Payment History, Credit Utilization, Length of Your Credit History, Types of Credit in Use, and any New Credit or Inquiries. Plus, public records such as bankruptcies, liens, judgments, etc… can all play a role.

Any negative information about these things mentioned will potentially have the same reaction in terms of your credit score (and vice versa). Keeping track and monitoring available credit, as well as having a mix of credit types all help to improve your overall creditworthiness!

Payment History
Credit Utilization
Length of Credit History
Types of Credit in Use
New Credit
Public Records (Bankruptcies, Liens, Judgments, etc.)
Credit Inquiries
Negative Information
Credit Mix
Available Credit

Credit Building Tip:

Also, If you want to buy something NOW or are thinking about buying something SOON that will require you to run your credit, then DO NOT apply for credit or use your credit RIGHT NOW! (i.e. credit cards, apartment rentals, vehicle loans, personal loans, title loans, buy items on credit, etc… You don’t want to run your credit for anything else! Plus that is one of the things that will impact your credit score — most likely causing it to go DOWN!

Ways To Raise Your Credit Score

If you are looking to raise your credit score, I compiled a list of Ways To raise your Credit Score fast! Such as: Making more Frequent Payments instead of saying once a month. Asking for Higher Credit Limits on all your credit cards. Becoming an Authorized User on someone else’s card. Using A Secured Credit Card that reports to the credit bureau.

Also, by Keeping Credit Cards Open and NEVER closing them unless they are costing you money (and you’re NOT benefiting from or using them). Mixing up the Types of Debt you have. And ALWAYS paying at least the minimum payments on all your bills and doing it ON TIME! — are all a list of ways to raise your credit score!

Make Frequent Payments
Ask for Higher Credit Limits
Become an Authorized User
Use A Secured Credit Card
Keep Credit Cards Open
Mix up the Types of Debt you have
Pay Bills On Time

How To Manage Your Credit Score

These are The First Steps You Need To Take To Get Your Credit Score Under Control! If I asked you “do you know what your credit score is?” could you answer me? Do you even check your credit history report regularly?

Not only should you know your credit score, but you need to be monitoring it and looking for ways to raise your credit score so you can improve it, daily, monthly, and annually! Plus, making sure you’re not doing anything negative to make an impact on your score!

Because if you did not know already why your credit score is important it can impact: Loan Approvals, Interest Rates, Credit Card Approval and Limits, Renting a Home or Apartment, Insurance Premiums, Employment Opportunities, Utility Deposits, Security Deposits for Services, Financial Opportunities, Financial Health, and more… This is why you need to know what it is and how to monitor it.

Monitoring Your Credit Score

There are 3 Major Credit Reporting Agencies: Equifax, TransUnion, and Experian. You can sign up online for each of them to monitor your score (some free vs paid).

You are also allowed a free copy of your Credit Report annually. The three nationwide credit bureaus — Equifax, Experian, and TransUnion — have a centralized website, toll-free telephone number, and mailing address so you can order your free annual reports in one place by visiting AnnualCreditReport.com

You can also use third-party credit monitoring services that help offer credit advice, prequalified cards, etc… like Credit Karma.

BEST FREE Ways to monitor your credit score

My favorite ways to monitor my credit score that have a free option are via Experian AND Credit Karma. For Both, I’d suggest Signing up for their “FREE” Account via Desktop Online to start and then be sure to DOWNLOAD their Mobile App to help monitor. Sometimes the desktop vs mobile apps show different results, views, etc… I like to look at both!

Reviewing Your Credit History Report

Request your credit history reports and be sure to review them! Check them for mistakes such as: payments marked late you know you paid on time, negative information that is incorrect, or too old to be listed. Dispute any Credit Report Errors To Get Them Removed! – A mistake on one of your credit reports could be pulling down your score.

The better your credit history and higher your credit score the better your chances are of: getting approved for an Loans, credit Card, and the Best Terms when it comes to getting the lowest Interest Rates which means Lower Payments! This can also impact the amount of any down payment required by your lender (or if you owe one at all)!

Now you know Why your Credit Score is important, what impacts it and ways you can raise it. Plus, How To Manage Your Credit Score and the steps you can take today to gain control! — Let me know your thoughts on this post or any questions you have by dropping a comment below! I can’t wait to read them!

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Hi, if we haven’t officially met I’m Blogging Brandi and this is my Money Blog! I am an ex-corporate Kool-Aid Drinker, Born to be a Blogger, Creator, and Entrepreneur. I also LOVE my dogs and RV a lot! Plus, I have a background in Accounting, Investments, and a Finance Degree! So, I kinda, maybe, sorta, might know a thing about money! Check out the About Page for all the details! 😉

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