7 ways of improving or repairing your credit score

7 Ways to Improve Your Credit Score 📈💰

In this video, we're going to discuss 7 ways to improve your credit score.

1. What is a Good Credit Score? 🤔

A good credit score is a number that lenders use to assess your creditworthiness. It's based on your credit history, which includes factors like your payment history, the amount of debt you have, and the length of your credit history. A good credit score can help you qualify for loans, credit cards, and other financial products with better interest rates and terms.

2. Importance of a Good Credit Score 💪

Having a good credit score is important for a number of reasons. It can help you:

* Get approved for loans and credit cards
* Qualify for lower interest rates
* Save money on interest payments
* Rent an apartment or buy a house
* Get a job

3. 7 Ways to Improve Your Credit Score 🛠️

There are a number of things you can do to improve your credit score, including:

* Pay your bills on time, every time. 🗓️
* Keep your credit utilization low. 📉
* Don't open too many new credit accounts in a short period of time. 🚫
* Dispute any errors on your credit report. 🔎
* Build your credit history by using a credit card or getting a loan. 💳
* Become an authorized user on someone else's credit card. 🤝
* Consider getting a credit builder loan. 🛠️

4. 'Soft' vs. 'Hard' Hits 🪶 vs. 🧱

When you apply for a loan or credit card, the lender will typically do a hard inquiry on your credit report. This can temporarily lower your credit score. However, there are also soft inquiries, which do not affect your credit score. These typically occur when you check your own credit report or when a lender pre-approves you for an offer.

5. Conclusion 🏆

Improving your credit score takes time and effort, but it's worth it. By following the tips in this video, you can improve your credit score and unlock a world of financial opportunities.

#creditscore #improve #finance #money #loans #creditcards

1. Subscribe to my YouTube Channel: Real Estate and Taxes with Lakshay

2. 7 ways to improve your credit score By Lakshay Gandhi CPA 647-987-4025 [email protected]

3. Agenda What's a good credit score Importance of good credit score 7 ways to improve your credit score “Soft” vs “Hard” hits Conclusion

4. Credit score A credit score is a three-digit number, typically between 300 and 850, designed to represent your credit risk, or the likelihood you will pay your bills on time. Creditors and lenders consider your credit scores as one factor when deciding whether to approve you for a new account.  Credit scores  provided by the three nationwide Credit Rating Agencys — Equifax ® , TransUnion ®  and Experian ®  — may also vary because your lenders may report information differently to each. Some may report information to only two, one or none at all.

5. Credit score is impacted by: 35% - Your payment history 30% - The amount of credit used vs. your total available credit 15% - The length of your credit history 10% - The types of credit accounts in your name 10% - The number of recent requests for credit you’ve made – Soft vs Hard inquires

6. 1. Consider becoming an authorized user on a credit card.   Authorized users aren’t responsible for payment on the account, but how the primary account holder pays the account may be reflected in your credit history. Parents do it with their children or close family member Some bank accounts don’t report to all credit bureaus Helps speed up your credit score repairing

7. 2. High utilization – pay down balances Try to use less than 30% of your available credit For example, suppose you have a credit card with a $5,000 limit and an average borrowing amount of $1,000. Your credit usage rate would be 20%. Pay your credit card in full Increase credit limits or get more credit so the 100% of credit isn’t used

8. 3. Remove late payments Pay off late amounts – even if its minimum payments 90 day impacts more than 60 day late payments Try negotiating with lender to remove late payment (after you catch up on payments) Dispute inaccuracies Don't skip a payment even if a bill is in dispute

9. 4. Don’t close old accounts The longer you have a credit account open and in use, the better it is for your score. Your credit score may be lower if you have credit accounts that are relatively new. Consider keeping an older account open even if you don't need it. Closing would erase old history from your account

10. 5. Don’t apply for credit too often. Credit inquiries, also known as credit checks, count toward your credit score. If there are too many credit checks on your credit report, lenders may think that you’re: urgently seeking credit trying to live beyond your means Get your quotes from different lenders within a 2-week period when shopping around for a car loan or a mortgage. Credit bureaus will combine and treat your inquiries as a single inquiry for your credit score

11. “Hard hits" versus "soft hits" " "Hard hits" - count toward your credit score. Anyone who views your credit report will see these inquiries. Examples of hard hits include: credit card applications some rental applications some employment applications "Soft hits" - These credit checks don't affect your credit score. Examples of soft hits include: requesting your own credit report businesses checking your credit report to update their records about an existing account you have with them

12. 6. Diversifying your credit Your score may be lower if you only have one type of credit product, such as a credit card. It's better to have a mix of different types of credit, such as: a credit card a car loan a line of credit A mix of credit products may improve your credit score

13. 7. Pay off tickets Thousands of Ottawa residents saw their credit scores tank overnight after the city hired a private agency to collect on old fines. Unpaid parking tickets, unpaid phone bills, an unpaid electric bill, or any other kind of collection item, if you can pay off all collection items and make sure that each one is removed from your credit report when its paid This can help in improving your score

14. Conclusion Review your credit reports timely Don’t use spam agencies to increase your credit score – it doesn’t work It can take 6 to 7 years from the date bad credit occurred for the negative information to fall off your credit bureau No quick fix

15. Thanks for listening! Any questions? Subscribe to my YouTube Channel: Real Estate and Taxes with Lakshay

16. View your credit report Borrowers with higher credit scores generally receive more favorable credit terms, which may translate into lower payments and less interest paid over the life of the account. Issues Not enough credit – newcomer? Late payments Collections High balances on credit card Bankruptcies and inaccuracies