Day 23: Improve Your Credit Score
A good credit score can improve your chances of getting a loan, renting a house, getting good insurance rates, and even landing a job. A good score also means youll qualify for better interest rates on your mortgage, potentially saving you thousands over the life of that loan.
Earlier in the series we discussed reviewing and cleaning up your credit report. Thats a good first step in building a good score, which is just a numerical representation of your report. The next step to improving your credit score is understanding the major factors that go into creating your score.
Luckily, we dont have to guess at what these factors are. FICO tells us what they are. Some of the factors are pretty obvious: pay your bills on time and do this consistently over the long-run. Other factors arent so obvious. But if you learn them, youll know how to take action to improve them.
Finally, remember not to be a slave to your credit score. It doesnt define who you are as a person. Simply aim to slowly and steadily increase it over time, and youll start to see improvements in your financial life.
- Your Credit Score by Liz Weston
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