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7 ways to improve your credit score on purpose.

11/21/2017

Lower credit utilization ratios This method will have the quickest impact on your score. Reduce "proportion of balance to limit" on credit cards and home equity line of credits (HELOC) to 25% or less individually and in the aggregate. There two ways to do this. Pay down the balance. Obtain a limit increase on your accounts. It will cost you an inquiry, whether approved or not. A hybrid strategy is also useful.
Do NOT close any accounts in good standing.
Close all inactive accounts that have a derogatory record.
Challenge any negative accounts with a DLA ( Date of Last Activity) longer than 7 years at a credit bureau.
Negotiate collections off your credit report. Paying a collection could lower your credit score. If the DLA changes, you also refresh the seven years the derogatory information will remain on your report. Remember, from a FICO credit score standpoint, it is the fact that you went to collections that hurts you. The damage is virtually the same paid or not.
Start paying your bills •On time •Every time •All the time• This one takes longer to impact your scores, but it is necessary for MAX credit and a MoneySmartLife style going forward
Stop applying for credit No matter how tempting the multitude of easy credit offers with incentives you get, don't apply. The offers can be tempting and appear financially prudent with the promise of further savings by just applying. But they can really mess you up.

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Maximize Your First Time HomeBuyer Credit Score on Purpose

11/8/2017

“A credit report is a statement that has information about your credit activity and current credit situation such as loan paying history and the status of your credit accounts.”

“A credit score predicts how likely you are to pay back a loan on time. A scoring model uses information from your credit report to create a credit score.”

Your Credit Score is an essential in 21st century America. Having the best one possible is important since it is used to evaluate you for financial and other services. A lifetime of subprime credit scores relegates the holder to exploitative and expensive financial services. That is if they can get services at all. Do people have low credit scores because they are poor? Do low credit scores keep poor folks poor by preventing economic upward mobility.

A good credit score is a financial capability and financial well being indicator. Similar to how blood sugar and pressure numbers reflect health and wellness.

Everyone can have good credit scores. Even if you have horrible credit now. Credit heals itself with time. You can start over and be totally free of your past in seven years. But you don't have to wait that long with the right strategy.

How your credit score is used

Get a loan or other form of credit
Get a job
Rent an apartment
Get insurance

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Defeat this self-defeating money behavior

11/7/2017

First Time Home Buyer Coleus Display 2017

If you are paying credit card interest on consumables like gas, food, entertainment or travel, then you are hustling out of the world backwards.

The good memories that linger are often corrupted by payment stress. It is so much better to come back with just the memories and not the bills. Stop paying double digit interest on your contributions to the sewage treatment plant and carbon emissions.

Credit card interest rates are usurious compared to other forms of borrowing. Current rates range between 13.12% and 22.99%. Carrying a balance on a credit card is not is good for your money. You can end credit card debt, if you do the right things based on your circumstances.

You can start by resolving to use ONLY cash for consumables from now on.

Cash limits your spending. It makes your spending more intentional and purpose driven. The key is to not take more cash than you need. Overspending will create budget shortfalls elsewhere.

Cash is any of the cash instruments. That would be debit and gift cards (no overdrafts allowed.) A well managed credit card. That is a credit card that has the statement balance paid in full every month by the due date. And of course, actual dollars and coins.

Going to cash for consumables may require a behavior change. Behavior change can be hard if you don’t frame it in your mind right. Think of it as a benefit and not a sacrifice. It is you not setting yourself up for failure. It also eliminates committing future earnings to service debt for transient purchases.

So go to cash for all consumables going forward. It may be tight for a while. You will use cash to take care of your current fuel, entertainment, and food needs. You will have to service and payoff the current debt, also.

Until then you are going to have to find creative ways for your family to conserve, entertain and eat. Some options include short term use of a food bank. Leaving your vehicle parked. Selling some of your stuff. Finding a paying side hustle. Netflix and chill. What are your strategies?

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7 ways to improve your credit score on purpose.

Maximize Your First Time HomeBuyer Credit Score on Purpose

Defeat this self-defeating money behavior