🚨Back to Basics: 10 Credit Commandments🚨
- Happy Wednesday Money Makers! A recent question I answered for one of the family members made me realize some of y'all might benefit from a little review of some of the most important aspects of building and cleaning credit reports. So let's recapping them again real quick:
- Peep the Potential Points: The US credit scale ranges from 300 to 850 giving a total of 550 Possible Points
- Obsess over Details, NOT Digits: Details of Credit Reports are much more important that the actual credit score
- Personal Information is the First Pull: Banks will pull your personal details first so cleaning them up on credit reports is also the FIRST thing to do when cleaning up negative items
- Stay FICO Focused: Know the FICO Framework (35% of score is payment history, 30% is utilization, 15% age, 10% mix, 10% inquiries)
- Starve the Secondaries: Secondary bureaus also known as Data Furnishers buy your data and sell it to the bureaus allowing negative items to report. Cut off their money by "opting out" of this reporting
- Respect Your Relationships: Build relationships with BANKS not Credit Builders then when you need money from an actual bank, they have more of a reason to trust you
- Start Secured: When you need to "build credit" do so with SECURED BANKING products (products baked up with something of physical value like a house, a car, or your actual cash) from "actual banks" so you can graduate to "unsecured" (not backed up by something of physical value)
- Make Sure to Mix it Up: 10% of your credit score is how you manage "different types of credit" secured, unsecured, installment, revolving etc. The more mixed the better.
- Retain all Receipts: Communications from creditors, collectors, debt companies etc 99% of the time is violating your legal rights so keep them and use as leverage when you need to dispute negatives
- Use Builders to Boost Score NOT to Get approvals: Credit building products like Kickoff, Kovo, and Self can improve your score over time BUT WILL NEVER improve your report so choose wisely where you spend your money!
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🚨Back to Basics: 10 Credit Commandments🚨
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