Credit Scores: Build Me Up Buttercup

Growing your dollars can take time but understanding your credit takes just a few minutes.  So take a look…

What Would Ice Cube Say?

You better check yourself before you wreck yourself.  And there are some great and free resources available online such as Credit Karma.  Getting your credit score used to be a hassle but things have changed (hooray! for technology).  Be sure to check out Credit Karma’s app to get a grip on what the credit agencies along with the rest of the gossip girls have been writing behind your back - xoxo.

Key Factors: The No Fun Zone

While these tips may not get you out of bed each morning, it’s time to be an adult and get down to the basics.

1. Your Credit History – The folks that determine your credit score are curious to know whether you had that credit card for 10 weeks or 10 years.  The longer the history the better.  

2.  Your Payments Over Time – Have you paid your monthly balance in-full or are you skipping out?  Credit agencies are looking at your ability to handle credit and whether you are able to demonstrate consistent payments over time.  This applies to anything from your credit card, to student loans, to even your monthly Comcast and other utility bills.  The good news?  Pay these off each month and your credit will be movin’ on up. 

3.  Credit Utilization – While high credit limits can be enticing, let’s slow our roll and spend less than 30% of our credit limit.  For example, your credit card allows you to spend $10,000…keep your spending under $3,000.  
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4. Last But Not Least - When it comes to credit, only take what you need.  Credit agencies track the number of credit applications you submit (think credit cards, loans, or insurance).  The fewer the inquiries the better.