Wealth Academy Podcast - Episode #79 - Make Your Credit Score Soar In 2021

Many people get a job work hard and make purchases on a multitude of products and services. over the years. In order to purchase big-ticket items such as a house or vehicle, one primarily purchases these items on credit by getting a mortgage and or a vehicle loan. 

It behooves you to set a goal to work towards a high credit score, one that positions you to get lower interest rates on products and services purchased on credit and or on a credit card. I'm providing ten tips to consider to help your credit score soar in 2021, here we go:

1. Stay on top of your credit, pay close attention to it because it fluctuates according to the type of credit you have and the balances you have on your credit card and it has a direct impact on your creditworthiness. You can get a free credit report annually from Annualcreditreport.com, it won't have your scores but it will  reflect your purchasing history. A low credit score is 580 and below and a high credit score is 800 and above.
2. Pay your bills on time each month. Sounds simple but we're human and unless we're monitoring our credit on a regular interval, it could bite you on your score if you're not paying attention. Do this consistently and you will have good credit.
3. Establish credit even if you've made mistakes. It's important to establish credit and if you don't it will be hard to get it without a history of applying for and getting a loan. Start out with a retail credit card and build from there, however, allow the card to mature and over time it will help you establish a good history.
4. Open a secured card if you don't qualify for a regular card. For example, if you don't have a credit card, put some cash into a refundable account and it represents a line of credit and over time, you will be granted a credit card without having to deposit money into an account.
5. If you happen to have a credit card, request an increase on the limit. This will increase your credit score because it will decrease your credit utilization ratio, and ensure you keep the percentage of credit number below 30% which is an industry-standard.
6. Prioritize credit card debt over loans. Your credit utilization ratio is determined by your lines of credit. Paying off credit cards saves you money because credit cards have a higher interest rate than a personal loan.
7. Keep your old accounts open and use your credit on them periodically, credit scoring rewards you for this.
8. Be selective in applying for new credit because it represents a hard inquiry. Too many inquiries will result in a lower credit score over time.
9. A debt consolidation loan can be a good thing because you will only have one bill to pay and the interest rate is typically lower.
10. Keep your credit score in perspective, it represents one aspect of your overall credit history, and look at it from a big picture perspective.  Don't obsess over your score, simply keep an eye on it every now and then.

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Host- Paul Lawrence Vann

Email info@paulvannspeaks.com

Phone (800) 341-6719