ABOUT CREDIT

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how do you dramatically increase your credit score? You have to look at the factors that are costing you points.

• 35% of your credit score is based on payment history. You don’t want late payments or collections. You want to factor 25 points for each collection and 35-40 points per late payment. If you want an 800 credit score, you need to have zero derogatory accounts and late payments, one to two inquiries, and ten accounts that are a mix of revolving and installments.
• Here’s how you raise your credit score by at least 15 percent; if you only have revolving accounts (credit card), you need to add an installment account (a car, a house, or any loan) and this will increase your credit score by 15%. The same applies vice versa if you only have installment accounts but no revolving accounts. However, I don't recommend getting a credit card if you’re below 700 35% of your credit score is payment history, that is your late payments and collections. Then, 30% is utilization. Maybe you’re using too much of your credit cards. Remember, I told you the magic number for utilization is 2%. Then, 15% is your age. The mixture is 10% and then your inquiries are 10%. If you want to see an instant win, you have to start attacking the things that are making the most impact.

We are not promised tomorrow. You better take your credit score and start doing something with it. Your potential is so much higher than where you’re at currently. Once you reach the 700’s and 800’s credit scores.