B&B’s Badass Credit Score – 420 is Not a Smokin’ Credit Score

Sherpa Sense:

Make your credit score great again – credit score essentials!

Let’s Yak:

Your credit score is reported by 3 independent credit bureaus (Experian, TransUnion, and Equifax) and represents your credit worthiness as an individual.  

FICO (Fair Isaac Corp) credit scores range from 300 to 850. A lower score means you are a higher risk for not paying your bills or loans → consequently you will pay higher interest rates for loans, credit cards, and even insurance rates. “Good” credit scores are generally above 700.  Below 640 is considered “sub-prime”; think higher interest rates and/or larger down payments, more expensive car and home insurance, etc.

Items that determine your credit score: Paying your monthly bills, your current amount of debt, the length of your credit history, diversity of credit types (e.g. car loan, credit card, etc), and how many credit applications are made on your behalf. This includes anything that requires a credit check: applying for a credit card, changing cell phone plans, etc. This does not include student, auto, or home loans.

Ways to improve your credit score. Pay all of your bills on time, every time. Keep your credit utilization low, meaning only use 1/3 of your available credit limits on your CCs. Be sure to pay off old debt or collections. Build some credit diversity by getting a credit card or car loan; but make sure to make your payments on time.  

Take a Hike:

Set up automatic payments or reminders for all of your monthly bills or loans and pay them on time! Do it today! Late payments have a mega-impact on your credit score!

Yakety Yak:

Bo and Brenda went to purchase their first home and wanted to be pre-approved for a loan. The bank told them their credit score was much lower than they expected. They learned after consolidating their student loans that one wasn’t included and was in arrears. They contacted the loan company and were able to clean up their credit history. Within two months their credit score improved and they were pre-approved for a home loan.

Federal law allows you to receive a free credit report from each of the three credit agencies every year.  This is a summary of your credit history. You can use this link to get yours https://www.annualcreditreport.com.

Also, you can see your current credit score by using an app like Credit Karma.

#420notasmokingcreditscore #raisemyscore #loweryourinterestrate #creditscore #creditscoresmatter #badcreditsucks #uglycredit

Peak Lookout:

Use credit wisely. See how a $1000 iPhone can cost you more than $1600. 

Tell a friend about SherpasForLife.com. We want to help as many young people as possible to reach higher peaks! Share the knowledge for a better world!
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