Learn why credit scores are important and ways you can strengthen your credit scores to not create financial clutter for peace of mind.
Do you know what your credit score is? Are you losing money because you don’t have a good credit score? Do you know other ways your credit score may be affecting your life?
Many of us are seeking financial abundance. How can the universe deliver if you aren’t doing your part? The financial stuff outer clutter is just as important as other clutter.
First, know you can improve your score.
How Your Credit Score Impacts You
1. Higher bills because you are considered a risk. Cellphone providers, insurers, and even utility companies — may have concerns and charge you fees or higher rates.
2. Buying a home or renting? Your credit profile/ score is the second-most important factor considered when applying.
A landlord may not feel comfortable having you on as a tenant. Also, it affects your mortgage rate. We had 3.5% interest which is really good and we were still paying thousands of dollars each year. Imagine if that were double. Or if you found the house or apartment of your dreams and couldn’t get it?
3. A recent Bankrate survey found that nearly four in 10 adults say knowing someone’s credit score will affect their willingness to date that person.
4. Your credit score is the biggest factor in determining your auto-loan rate. Higher interest rates.
According to LearnVest, “47% of employers run credit checks on job candidates primarily to reduce the potential for theft and embezzlement, reduce liability for negligent hiring, and assess trustworthiness.”
What’s your credit score? Do you even know your credit score? You might not and it is important that you find out.
A FICO score is a type of credit score created by the Fair Isaac Corporation. Your FICO Scores only look at the information in your credit report. Your credit score is calculated from your credit report. Most of this information comes from the consumer financial protection bureau. https://www.consumerfinance.gov
TIP: Go to AnnualCreditReport.com to view your credit score once per year. Because of the Fair Credit Reporting Act, every person is entitled to a free credit report once per year from each of the major credit bureaus: Experian, TransUnion, and Equifax. You can also request these reports by calling 1-877-322-8228.
How to improve credit scores
- Keep balances low on credit cards and other “revolving credit”.
- Pay off debt.
- Don’t close unused credit cards.
- Don’t open a number of new credit cards that you don’t need.
- Dispute errors. Mistakes happen.
- Negotiate. Ask creditors to “erase” debt that went to the collection when unemployed. Write a letter offering to pay the remaining balance if the creditor will then report the account as “paid as agreed” or maybe even remove it altogether.
- You can also ask for a “goodwill adjustment.” If you were a good credit card customer until unemployment, write a letter to the credit card emphasizing your previous good history and ask that the mistake be removed from the credit report.
- Check your limits. Don’t max out each month.
- Get a credit card. Having one or two will help your score – if you don’t charge too much and if you pay your bills on time. In other words, be responsible!
- Don’t close any cards. Canceling a credit card will cause your available credit to drop, which doesn’t look good to a bureau. One way to keep a card active is to use it for a recurring charge such as a utility bill.
- Pay your bills on time. Your payment history makes up 35% of your FICO score.
Take Actions from Today’s blog on clutter-free living
- Find out your credit score.
- Can you determine if your credit score has negatively affected your life?
- Research your credit report for errors and take any action to correct.
- Choose one thing to improve your credit card scores right now.
DIY Options for Clutter Free Living
Purchase Julie’s books, classes and decluttering affirmations on how to clear clutter from your life: https://reawakenyourbrilliance.com/shop/
Subscribe to Clear Your Clutter Inside & Out Podcast https://reawakenyourbrilliance.com/life-coaching/podcast-coaching/self-help-podcast/
Check out more of my decluttering tips and how to get organized on my YouTube channel. https://www.youtube.com/user/SeibertRadio?feature=watch