For many people, keeping a close eye on their credit score and actively maintaining a healthy score can be a daunting task. This is especially true for anyone along the spectrum of new life choices or unexpected changes. Whether it’s purchasing a vehicle or home, or perhaps a sudden barrage of medical bills, one can be faced with the reality of the power held by those three numbers.
Defining the Credit Score
Let’s break down those numbers to get a better understanding of where you are and what it means for you.
850= Highest. If you are here, you are golden. You can expect the lowest of interest rates; any institution would be pleased to grant you a loan or anything else you might be requesting.
720= Outstanding. This is an excellent score and you can negotiate some good interest rates. Most institutions will grant approval with this score.
680= Good. This is a decent score. You are looking at a little bit higher interest rates with the possibility of some hesitancy or possibly denial of larger loan amounts.
620= Danger. This will cause concern for many institutions and higher interest rates.
500= Needs Work. It will be difficult to get approval for loans and other financial endeavors. There are most likely red flags on your credit report that need your attention & action to resolve.
How to Improve Your Credit
1. Check Your Credit Score
And check it often. This is the best way to make sure there are not mistakes on your credit report, and you can mark your progress. Most websites will make you pay to check it, but don’t do that either! Credit Sesame is a good website that won’t make you pay for checking it several times a year.
2. Set Payment Reminders
One of the most common ways people mess up their credit score is by missing their payments. If you know a bill is due the same day every month, or around the same time, then set up reminders on your phone! You have it right there with you at all times, so this is the easiest way to keep yourself in check.
3. Reduce Your Debt
You hear financial advisors say it over and over again: if you have debt, cut the card! This is the other common way people mess up their credit score. If there are debts you can’t get rid of right away, like student loans or mortgages, then pay the full amount on time. Every time you have a little extra money in your pocket, use it to pay back a little more debt. Consistency is key here.
Obtaining a better credit score is key when getting back on track and give you freedom in your finances. How can you improve your credit score? Create a plan and work towards it every day.
In what ways do you need to get back on track financially? Comment below!
After becoming Bankrupt in 2005 my hairdressing salon closed, that debt was all paid back. Then Living of credit cards to survive, defaulting not paying minimum amount,now on top of that, as my income varies so much now being freelance now.
Sometimes, you have to make hard decisions when life goes the wrong way. I am glad that you are back on track now though! Keep up the good work!
Good Morning Billy,?
Thanks for your reply. Also to say how much I have enjoyed your book “Money Mastery” plus a copy for my son. Now on second read with my pen & highlighter. Many thanks for your Godly Wisdom & Knowledge. You are Awesome brother in the Body of Christ. Every Blessing is upon you, family & ministry. In his Love Ralph. ?
Know where we are on a monthly basis. Get systems going in our hair business. Going from being a technician of doing hair to becoming a business.
Pay bills on time. Know where we are at all times.
Those are all good tips! Thank you for sharing!
Hi Billy, I ordered a financial pack from Andrew Wommack and your book Money Mastering was in the pack. What a great book!! I’m reading it again! Where do I go from here. What is my next step training on Real Estate Investing? I’m so excited to get started ?
Hi Myrna,
I’m so glad you’ve enjoyed the book! Have you gotten the workbook to work through Money Mastery? It will help clarify next steps in your journey. As far as Real Estate Investing, I have a Real Estate Mastery Audio teaching that includes so much information as well as helpful tools like investment calculators and sample documents. You can find that teaching here: https://billyepperhart.com/shop/real-estate-mastery/ If you would prefer, I also have a Real Estate Workshop towards the endo fo the year. Keep an eye out for that if you are able to come in Colorado, and that will also help you!