I received an email from an Aspiring Entrepreneur who works Monday- Friday + is a single mom. I thought I would share our decision and the tips I have under this topic. We discussed her credit… She asked me my history on the topic and I explained to her that I’ve taught financial literacy to adults and youth. I also explained to her how I went from no credit at the age of 19 to 700+ credit score at the age of 21 with never having a car note or student loans. As we discussed further my knowledge of building credit. She went on to ask why I don’t provide credit repair services as a “side hustle”.
She stated that she read my blog posts and seen me post about this topic on social media. I simply explained to her that I don’t want to be “the Jane of all trades and the master of nothing”. I also explained to her that I don’t provide “magic”. Social media really have people thinking that what’s on their credit report will just disappear 😳 that same day. Yes, if it’s something that should be removed after seven years or disputed. It should/will get removed and your credit score will improve.Typically it could take up to 6 months to honestly see results on your credit score and/or report.
Anywho, Building your credit is not rocket science… These are my proven free tips (that I can think of off hand)
- Check your credit report every four months (Annualcreditreport.com provides free credit reports annually from the three credit bureaus- you are checking your credit report every four months to ensure that your identity wasn’t stolen, and make sure that it reflects accurate information.)
- When reviewing your credit report, delinquent accounts past 7 years should be removed (for most items).
- You can check your credit score for free with the CreditSeame app. (I can’t remember which bureau they use- I think it’s Transunion).
- Dispute what shouldn’t be on your credit reports (you could be a victim of identity theft).
- Stop opening lines of credit (I know it’s tempting to receive x amount off your purchase that day- if you want that extra 5% off target, use the debit option.
- Keep your monthly bill under half the max (example: credit card limit 1k monthly bill should be under $450.
- Close any accounts with annual fees (unless the pros out way the cons).
- Pay your bills on time every month.
- Pay the credit card bill with the highest Percentage rate off first.
- Learn your wants, from your needs.
- Try to avoid having balances on all the credit cards you have.
I know “Cash is King” it’s nice to have options, though…
- Also, know that if you’re an authorized user on someone’s card. That’s not building your credit. It’s building their credit and if there smart they have a rewards cards and is receiving rewards from your purchases when using the card.
- If you’re having a hard time getting approved from a credit card company. Apply for a secured credit card. Make purchases and pay the card off ASAP. Also, make sure that you review the terms and try to apply for a card without an annual fee.
- If you have a rewards credit card, you can still pay the balance off prior to the billing statement ending and still received the points/rewards.
- If you have additional questions, just email me. No, I’m not charging and you don’t have to complete anything. Ask the question and I will reply. I just want to see you succeed in 2017.