Is it possible to increase your credit score? Yes, it is in today’s video I talk about what is a credit score, why is having a good credit score important, what makes up your credit score and what hurts your credit score the most?
What is a credit score?
according to investopedia.com A credit score is a statistical number that evaluates a consumer’s creditworthiness and is based on credit history: number of open accounts, total levels of debt, and repayment history. Lenders use credit scores to evaluate the probability that an individual will repay loans in a timely manner.
What are the 5 factors that affect your credit score?
#1 Payment history makes up the largest chunk of your FICO score which is 35%
#2 Credit utilization accounts for 30% of your FICO score.
#3 Credit history length. How long you’ve held credit accounts makes up 15% of your score
#4 New credit accounts for 10% of your score. The number of credit accounts you’ve recently opened.
#5 Credit mix accounts for 10% of your score.
Looking for help to fix your bad credit?
Although I do offer money coaching I do not fix credit, check out this wonderful course from my good friend Sandy Credit Repair Course Mentioned: If your goal is to improve your credit this year this is the perfect course for you with a step-by-step break down of how to fix your credit so you never had bad credit again. Learn more here
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