Credit Hacks – Best Practices

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What is a Credit Score?

A credit report score or credit score, is a three-digit number, typically ranging from 300 to 850. This score summarizes your credit history and predicts your likelihood of paying back debt on time. It’s essentially a snapshot of your financial health as seen by lenders.

A credit score is a mathematical formulated number generated to predict credit worthiness. Lenders, insurance companies and landlords rely on a credit score to decide whether to issue an approval decision. A higher score indicates a lower risk. 

Ask us how to pull your credit, check your score and monitor for errors or inaccurate information.

 

How Long Will Information Remain on my Credit File?

  • Delinquencies, Collection Accounts, Charge-offs: 7 years from the first late payment or delinquency date.
  • Judgments and Chapter 13: 7 years from file date.
  • Leins: 15 years from recording. Paid Leins: 10 years from payment date.​
  • Chapter 7 and 11 Bankruptcy: 10 years from file date. 
  • Closed Accounts: 10 years from closed date.
  • Inquiries: 2 years from last inquiry date.

What Impacts a Credit Score?

35% – Payment History

30% – Credit utilization

15% – Credit Age

10% – New Credit

10% – Credit Mix

Schedule an appointment to learn more.

 

Smarter Credit Card Management

  • Reduce usage to 6%
  • Pay on statement date
  • Start a debt avalanche plan
  • Consolidate debt
  • Start a debt snowball plan

Schedule an appointment to learn more.

 

Proactive Budget Mindset

Begin 2024 guiding your money toward your dreams – without limits. Track spending with newfound curiosity. Identify areas where values and finances misalign, such as that gym membership from 2023 you never used. Celebrate progress, not perfection.

This year, let your budget become a flexible tool and financial compass that leads toward a year of financial freedom. It’s not about sacrifice, it is about choosing where money goes. So, grab a beverage of choice, a blank notebook and design a budget that reflects what matters most.

Debt Relief on a Big Spend

Building a debt relief plan after a big spend requires assessing the situation and choosing the right strategies.

Debt Assessment: Gather statements, list debts and calculate totals.

Define a Repayment Strategy: Prioritize paying off debt with the lowest balance first. Additionally, focus on the debt with the highest interest rate first. Consider transferring high-interest credit card balances.

Be mindful of future spending and stick to your new budget. Resist using credit cards. Consider consulting with us for personalized guidance.