At OMG WOW HQ we focus on creating valuable content that fits into one of our five FRESH pillars. Those pillars include: finance, relationships, entrepreneurship, spirituality and health. Every Tuesday we take to Instagram Live with finance expert and coach, @jacquelinechildressmitchell to discuss different topics that our followers email us weekly and common questions asked among our community.
By popular demand, this week we are discussing the importance of good credit, and 7 tips to help you repair your credit. If you want to buy a house, car, start a business or acquire assets, credit matters. The good news is that no matter where you are in your credit journey, there are ways to improve your FICO (Fair Isaac Corporation) Score.
For those who are not familiar, there are three agencies that collect credit data: Experian, Equifax, and TransUnion. You can monitor your credit, inquiries, personal information and public records on each of these credit bureaus via their website as well as other third party websites. A few resources we recommend are: Credit Karma, My Fico, Experian, TransUnion, to name a few. A FICO Score represents the amount of risk a prospective borrower provides to a lender. Scores range from 300 to 850 and help lenders evaluate a consumer’s creditworthiness.
Unfortunately there is no shortcut to repairing your credit but there are ways to improve it starting today. Here is a list to help you get started:
Everyone from credit card issuers and insurance companies, to mortgage lenders and property managers use FICO scores, so it is best to get in the habit of paying off your debt and building your credit. Most lenders prefer longevity when considering your for a loan so make sure to pay off your debt and credit cards monthly and maintain credit history for a long period of time. While there is no perfect number of credit cards to have open at one time, credit bureaus suggest that five or more accounts — which can be a mix of cards and loans — is a reasonable number to build toward over time. If you are just starting out or have a lower FICO score we suggest opening a Self account as well as boosting your credit with utility bills, etc., on Experian Boost.
It is a commitment to maintain a good credit score and healthy financial practices that will help you build credit over time so you can acquire more assets, but these tools are a good place to start repairing your credit. No matter what age you are, credit is one of the most valuable investments you can make into your future.
We would love to hear your thoughts, stories, and experiences with credit in the comments below. If there is anything you would like us to discuss on our next blog post, IG Live, or you are interested in joining our free mentorship program, leave us a comment below or email us at: email@example.com. We’ve got you!