FNCL.RSCH: CREDIT BREAKDOWN
HOW TO USE YOUR CREDIT. HOW IT IS MEASURED.
2021.01.03.01.12.012 . 00.00 . L00 . D00
1. ONTIME PAYMENT HISTORY - 35%
* NOTHING ELSE NEEDS TO BE SAID OR EXPLAINED; MAKE YOUR SCHEDULED PAYMENTS EITHER EARLY…OR…ON TIME!
2. CREDIT UTILIZATION - 30%
* HAVE A LOT OF CREDIT! - The point to credit is having enough of it so that when you use it, it doesn’t matter.
* Don’t keep a balance. - Keeping a balance on your accounts is a stupid idea. Plain and simple.
* Have LOW Utilization. - Anything under 6% of what is provided and available to you is great! Using more than that is risky.
* Get MORE Credit (every 6 - 12 mos.) - You should make a plan of getting a new line of credit (credit account) every 6 months.
* ASK for an Increase. Never be afraid of asking for an increase. If you ask, be willing to pay for one.
* Average Credit History Length. - Don’t wait to add on lines of credit because your most recent will affect measurements even if your first was for something like 2, 3, 4, 5, or more.
* 9 YRS + for Adequate CH. - Try to have multiple accounts but ensure that you can hit that 9 year mark.
4. TOTAL CREDIT LINES - 10%
* More Credit > Higher Limit > Lower Utilization > Higher Credit Score
* Make Sure You Can Handle Your Credit. - It’s important to make sure you can handle your shit. Remember that your total amount of the credit available to you is all that matter. 2 cards; one with a limit of $3000 and the other with $9000 is a total of $12000.
* 21 Lines of Credit for a HIGH Score! - While this might sound like BS, this was the thinking some time ago but the measurements are a bit different now. This is an ideology but I wouldn’t advise taking on more lines than you can handle.
* Diversify Credit Profile. Attempt to get cards with varied Annual Percentage Rates. Build your associations with multiple financial institutions. The more populated you are, the higher your value and reduced perception of risk.
5. TOTAL HARD INQUIRIES - 10%
* Less Inquiries mean you don’t NEED the Credit. - This might sound stupid based on everything else conveyed but this means to stick to a plan of 2 inquiries a years. NO MORE. No more than 1 every 6 months.
* New Cards (Lines of Credit) : Reduced Credit History.
* Hard Inquiries last 2 years. - Remember that these inquiries will be in your history for 2 years…so make whatever you apply for…count.
* Impacts the Score for 1 year. - A hard inquiry will hit your credit…so be sure to have a GREAT HISTORY to start off with and keep it going.
* Preferred to have 0 Inquiries within the last 12 months. - Yeah. This is preferred when financial companies look into your stuff…but this won’t matter as much as you think it would. It’s good however, to take a break in between years. There’s value in not seeming to be hungry.
CHECK YOUR CREDIT CONSISTENTLY & CONTINUOUSLY! Make sure you know where you stand. Use those resources provided now to get a good idea of where you stand. Learn your position…then ACT accordingly.
LOOK INTO CREDIT PIGGYBACKING…for your children. While people talk about Generational Wealth thru home and property ownership, KNOWLEDGE and “having the backs” of the ones in your “clan” is key. Having a GREAT START is the key!
GET A CREDIT MANAGER. Honestly, while credit management is not a difficult thing to implement, it’s best to pass your cards and accounts off to someone you trust to help you use and manage them to the fullest of their potential.
2087
blakekathryn
jacobvanloon
jbbartram-illu
germansingergirl
stormborns
kaledo-art
