How To Improve Your Credit Score - Part 3 - Build Your Credit
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Transcript of How To Improve Your Credit Score - Part 3 - Build Your Credit
Part 3 – Build Your
Fix My Credit University ™
Building CreditStarting from scratch…
Where Do I Start?
Savings Account Job
What Am I Working With?
Total Recurring Debt
Debt To Income Ratio
Keep below 36%!!!
Know The Mistakes• Not paying bills on time. (due to lack of funds)• Paying off a store card, with another credit card.• Forgetting to pay credit card bills, even if you have the money.• Closing a credit card if you have a few late payments.• Only having one credit card and never using it at all.• Leaving high balances on credit cards month to month.• Refusing to pay certain charges out of a dispute.
Typically occur between ages
Know YourselfTake note
of common credi
Take a perso
nal inventory of your areas
plans for prevention.
Store Credit Card
Just because you have credit,
does not mean you need to use all of it. Stick to small purchases that you can pay
off when your bill is due.
*** Setup Automatic Bill Payments ***
***Make double payments on your loans. ***
Make sure you are paying down the principal!
Bump It UP
Every six months
contact your credit card companies and ask for
a credit increase.
• Shred sensitive documents with
account numbers, social security numbers, etc. • Request
statements be emailed instead of
mailed.• Cut up old credit
Don’t do it! If they don’t
pay, it’s your debt!
Building CreditStep by step…
Get a savings and checking account set up at a local bank or
Get a credit card from said financial institution.
Get one or two store credit cards. (Remember, they should have
good incentive programs and be from stores you shop at regularly.)
Set up auto bill pay on the aforementioned credit cards.
(Eliminate the possibility of late payments.)
Sign up for a Credit Karma account.
Download the app for your smart phone / tablet and monitor your
Pay your debts early each month.
Shred all sensitive documentation you receive in the mail. (Things with account numbers, social
security numbers, etc.)
Arrange for your credit cards to send you electronic bills and
statements via email. (This will give you less documentation to
Part 4…Frequently asked questions, tips, and tricks…
• If you want a guide to hold your hand through the process of fixing your credit score, check out Fix My Credit, Build My Credit.
• Save money on expensive credit repair services and do it yourself!