What do you know about your Credit Score? Do you know who creates your credit score? Do you know who can look at your credit score? Do you remember giving anybody permission to create your credit score? Did you Give Permission to share your Credit Score?
Your Credit Score. Your Credit Report. Your Electronic Reputation – and Your Money!
This week at the Bauer College of Business at University of Houston I’ve been interviewing people who I consider to be “experts” when it comes to credit scores and credit reports. I learned a LOT this week about Credit Scores – Click Here to LISTEN NOW.
In This Week’s Show
— 3 Major Myths about Your Credit Score
— I’ll Tell You 7 Ways Your Credit Score is Used to Measure How Risky – or Profitable YOU ARE to those poor banks, insurance companies, and other financial services companies and then you’ll understand exactly how “they” use your credit score to make money,
— You’ll also find out EXACTLY WHAT YOU CAN DO TO IMPROVE YOUR CREDIT SCORE without paying a dime to those scam-artists who promise to help you “improve your credit score”.
— 10 Behaviors you will be aware of after today’s show that can help – or hurt your credit score so that you avoid the common mistakes that HURT YOUR CREDIT SCORE.
— Finally, I’ll share my top ten list of ways you can manipulate your credit score to protect your electronic reputation and save money!!
I had no idea how little I knew about credit scores until this week. In preparation to teach my students about credit scores and credit reports this week in my Personal Finance class, I had to do a little research. Well, maybe a lot of research.
Ten Behaviors That Impact Your Credit Score
Do you know the top 10 financial behaviors that can hurt your credit score? It turns out that most people don’t – especially parents. According to a new survey by ING Direct, only five parents out of 1,042 could correctly identify the following behaviors as damaging to credit scores.
- Keeping a small credit card balance each month
- Lowering your credit limit
- Closing old credit card accounts
- Opening new credit card accounts
- Never having a credit card
- Having a short history of credit
- Exceeding a credit limit
- Having a lot of debt
- Paying a mortgage late
- Paying bills late
Ten Tips to Manipulate Your Credit Score – to your advantage
1. Pay your bills on time.
2. Review your credit reports at least once every year – every 12 months – through www.annualcreditreport.com.
3. Clean up your own credit report by disputing inaccurate information for free! Don’t fall for any promises to improve your credit report or credit scores overnight. You can dispute the in accurate information yourself – for free!
4. Don’t close existing credit accounts. Instead, put your credit cards away – in a safe and secure place – and stop accumulating debt.
5. Create a debt worksheet and include the following information: annual percentage rate, name of the creditor and address, last four numbers of your account number, telephone number, limit, amount you owe, minimum payment, billing date.
6. Contact your creditors to work out a plan to rebuild your credit issues – if you can afford the payment: ask your bank or credit union if they offer a secured credit card or secured loan and verify that your “on time” payment history will be reported to the three major credit reporting agencies. You may be able to make a deposit to your account and have a credit limit or loan in the amount of your deposit.
7. Use the “Snowball Effect” to completely pay off one debtor at a time.
8. Know your credit limits and pay down your credit card balances to no more than 30% – or less – of your total available credit limit.
9. Do not – ever – cosign for another person – it can ruin your credit score!
10. Be patient: it takes time and discipline to improve your credit score and history.