Credit can be a scary topic and rightfully so, many American’s weren’t financially educated about what their credit score even is. Despite that 3 digit number having a 6 digit impact on their financial well being.
With that being said I am going to provide you with the financial education that is lacking in nearly all schools across the United States so you never have to have bad credit again.
First and foremost, I am referencing the FICO 8 scoring model that is the most wildly used scoring model today.
35% Credit History
This is the largest portion of what makes up your credit and it is a behavioral aspect of how your score. What this means simply is don’t have late payments. Even if you can’t pay your whole balance on a card ALWAYS pay the minimum payment. One late payment can hurt your score upwards of 60 Points!!
Now if you already had a missed payment you can send Late Payment Forgiveness Letters to your creditors in an attempt to get the late payments removed. If they refuse, you can dispute the late payments.
30% Utilization
The second largest factor of what makes up your credit is Utilization. This has to do with credit cards, if you have a credit card with a $1,000 credit limit you want to keep your utilization between…
