How to CONQUER yourCREDIT SCORE

A credit score is a nasty, brutish beast.

But not only can it be beat…

You can MAKE IT WORK for you.

The key is to understand how credit scores are calculated.

And that’s exactly what I’m about to explain…

But before doing so, let’s cover a fewPRELIMINARY MATTERS

Your credit score is a number between 300 and 850.

Its purpose is to gauge how likely it is that you’ll repay your debts.

The higher the number, the more likely it is that you’ll do so.

800-850

750-799

700-749

650-699

600-649

550-599

500-549

300-499

1%2%5%15%

31%

51%

71%

87%DELINQUENCY RATE

CREDIT SCORE

Data source: FinanceandCareer.com

So, what’s a GOOD SCORE?

This is how it breaks down…

Range Quality720-850 Excellent680-719 Good620-679 Average580-619 Poor500-579 Bad300-499 Miserable

www.FreeScore.com

Simple enough, right?

So here’s the question:

So here’s the question: What specific things can you do to increase your credit score?

And the answer is:

And the answer is: You have to fight fire with fire.

You have to understand how your score is calculated in order to determine the best way to improve it.

Take a look at this chart: Payment His-tory35%

Amount of Money Owed30%

Length of

Credit History15%

New Lines

of Credit10%

Types of Credit Used10%

Data source: FreeScore.com

Take a look at this chart: It shows the FIVE VARIABLES that credit agencies use to generate your score.

Payment His-tory35%

Amount of Money Owed30%

Length of

Credit History15%

New Lines

of Credit10%

Types of Credit Used10%

Data source: FreeScore.com

Your payment history is the most important, with a weighting of:

Payment History

35%35%

Data source: FreeScore.com

This makes sense when you consider this chart from earlier.

800-850

750-799

700-749

650-699

600-649

550-599

500-549

300-499

1%2%5%15%

31%

51%

71%

87%DELINQUENCY RATE

CREDIT SCORE

Data source: FinanceandCareer.com

Second is the amount of money you currently owe:

Amount of Money Owed30%

30%

Data source: FreeScore.com

This is why maxed out credit cards are so bad.

The next most important is the length of your credit history: Len

gth of

Credit History

15%

15%

Data source: FreeScore.com

This is why older people generally have better credit scores than younger people.

18-24 25-34 35-44 45-54 55+

630 629 630

647

670

AGE

AVERAGE CREDIT SCORE

Data source: CreditKarma.com

In fourth place are any new lines of credit or recent inquires:

New Lines of

Credit

10%

10%

Data source: FreeScore.com

Finally, are the types of credit you have experience with:

Types of Credit Used10%

10%

Data source: FreeScore.com

The two main types include:

The two main types include:

1.Revolving accounts• Like credit cards…

The two main types include:

1.Revolving accounts• Like credit cards…

2.Installment lines of credit• Like mortgages and car loans…

So, to tie everything back together into a pretty little package…

If you want to improve your credit score…

FIRST Identify which of the five variables are wanting in your case.

SECONDPrioritize their importance based on the weighting.

THIRDAnd then attack them one by one.

While the process takes discipline and patience, it’ll be well worth it to conquer your credit score.

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