Increase Your Credit Score in 2019 | Millennial Money

For this episode of Millennial Money, I wanted to focus on how you can increase your credit score FAST in 2019.

Credit score is how well you take on debt, aka, making payments on time. There are several things that effect a credit score such as debt history, credit history, credit usage, hard inquiries for your credit, making payments on time, to name a few.

Having a great credit score is extremely important, unless you want to buy a house, car or anything else in all cash! Credit score determines the interest rate you get on any debt that you incur. One of the biggest debts that most people take on during their lifetime is a mortgage.

A 1% difference on a mortgage between a person with a high credit score and a low credit score can mean paying an extra $43,000 in interest over the span of 30 years. Having a bad credit score will keep you broke, which is why it is so important to start building your credit history NOW, instead of later. It can be the difference between being financially free, or broke forever.

What three things did I do to increase my credit score from a 590 to 750 in a year and a half?

1) I got a credit card. Getting a credit card is the start of the long credit history journey. It is important to use that credit card wisely, as some people cannot handle spending money that they don’t visually see, or have. It is important to keep the credit card usage under 30%. I was at 90% usage and when I paid my whole credit card off, my credit score skyrocketed by more than 60 points.
2) I got a car, never missed the payment, and always paid a little more than I owed. Interest is terrible and by paying more than my actual payment, I am putting more towards the interest and less towards the car.
3) Goodwill letter- a letter to any missed payment banks/lenders stating why you missed the payment. I am currently in the process of writing one to Bank of America for missing two payments while I was in another country, and if I get these two missed payments removed, my credit score might be closer to 800!

Increase your credit score today if you can. It is extremely important and the length of your credit history matters. Thank you for watching!

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Email: PJ@onealteamhomes.com

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