Did you know that Improving your credit score by just a few points could save you hundreds of dollars a year? It’s true. Your credit score tells lenders three things: whether to lend to you; how much to lend to you; and at what interest rate. Neile Simon joins Rob West today with tips to improve your credit score. 
Neile Simon is a Certified Credit Counselor with <a href="https://www.christiancreditcounselors.org/">Christian Credit Counselors</a>. 
<ul><li>CREDIT SCORE DETERMINING FACTORS</li><li>The following factors will determine your credit score: </li><li>Payment History: 35%. Paying your bills is hands-down the most important factor.</li><li>Credit Utilization: 30%. Try to keep your credit balances below 30% of your total available credit. </li><li>Length of Credit History: 15%. The longer your track record, the better. </li><li>New Credit: 10%. When you apply for new credit, inquiries remain on your credit report for two years. FICO Scores only consider inquiries from the last 12 months. (source: myfico.com)</li><li>Types of Credit: 10%. Paying on-time on a variety of different types of loans can help, brut is by no means the most important factor. </li><li>THE IMPORTANCE OF A STRONG CREDIT SCORE</li><li>Your credit score can affect numerous things, such as: </li><li>Your credit score could affect your ability to rent a home or apartment</li><li>Prospective employers may check your credit score to determine how responsible you are. </li><li>Those with poor credit may have to pay large deposits to hook up utilities are open a non-prepaid cell phone account. </li><li>Your credit can also impact your ability to start a business or take advantage of other opportunities. </li><li>HOW TO IMPROVE YOUR CREDIT SCORE</li><li>If your credit isn’t great, here are a few tips to improve it: </li><li>Pay your bills on time! Again, this is the biggest factor determining your credit score. </li><li>Become an authorized user on someone else’s credit account. Just be aware that if they are late on their payments, it could adversely affect you too. </li><li>Open a secured credit card account. This type of account allows you to make a cash deposit to secure your line of credit. This can be a great option for a young person with no credit history. </li><li>Credit cards that offer higher interest but not as strict with credit history. Examples: Credit One, First Premier.</li><li>Get your credit reports from Experian, TransUnion and Equifax to ensure there is no incorrect information. You can access your reports at <a href="https://www.annualcreditreport.com/index.action">AnnualCreditReport.com</a>. </li><li>If you find any errors on your report, dispute them!</li><li>If you have debts in collections, work with your creditor to make the account current or at least agree to structure payment arrangements. </li><li>Get credit for making rent and utility payments on time. Several companies offer the service of reporting your payments to the credit bureaus. </li><li>HOW CREDIT COUNSELING CAN HELP</li><li>Sometimes, you need help to get on top of your debt. That’s critical for improving your credit. <a href="https://www.christiancreditcounselors.org/">Christian Credit Counselors</a> can be a great option. </li><li>Christian Credit Counselors does not arrange debt consolidation. Instead, they help you set up a debt management program to pay off your debts in full up to 80% faster, at a lower interest rate and with very manageable payments. </li><li>Working with a credit counseling agency does not negatively affect your credit score.</li><li>A combination of the high balances and how many accounts you close is what will determine your credit score at the start of the Debt Management Program. As you pay down your balances and pay off your accounts through the program, your score will continue to improve.</li><li>Your credit report will show a history of consistent on time payments and it will show that your balances are decreasing and accounts are being paid off.</li><li>When you complete your Debt Management Plan not only will you be debt free but you’ll also see an improvement in your credit score and overall financial situation. </li></ul>On this program, Rob also answers listener questions: 
<ul><li>What is the best way to invest money for the short term for a family with three young kids? </li><li>When does it make sense to take money out of savings and invest it? </li></ul>RESOURCES MENTIONED
<ul><li><a href="https://www.moneywise.org/find">Find a Certified Kingdom Advisor</a></li><li><a href="https://soundmindinvesting.com/">Sound Mind Investing</a></li></ul>Remember, you can call in to ask your questions most days at (800) 525-7000 or email them to <a href="mailto:questions@moneywise.org">Questions@MoneyWise.org</a>. Also, visit our website at <a href="http://moneywise.org/">MoneyWise.org</a> where you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app. Like and Follow us on Facebook at MoneyWise Media for videos and the very latest discussion! Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the <a href="https://moneywise.netviewshop.com/donate2">Donate tab on our website</a> or in our app.

FaithFi

Faith & Finance is a daily radio ministry hosted by Rob West. The program offers a practical, biblical and good-natured approach to managing your time, talents and resources.

Faith & Finance with Rob West

Did you know that Improving your credit score by just a few points could save you hundreds of dollars a year?  It’s true. Your credit score tells lenders three things: whether to lend to you how much to lend to you and at what interest rate.

Improve Your Credit Score With Neile Simon

FaithFi | Feb 3, 2022

Show Notes

Where Faith Meets Finance

You May Also Like