Two weeks ago, I shared with my newsletter community the exact steps I took to grow my credit score from 705 to an impressive 779 in just one year—now, I’m on the brink of hitting 800! If you’re looking to achieve the same, you’re in the right place.
The 5 Key Ingredients to Boost Your Credit Score
Improving your credit score involves focusing on these five essential factors:
1. Payment History (35%)
Your payment history is the most significant factor affecting your credit score. Consistently paying your credit cards, loans, and mortgages on time helps build a positive record. Late payments, defaults, or accounts in collections will negatively impact your score.
2. Credit Utilization (30%)
This is the percentage of your available credit you’re currently using. To boost your score, keep your credit utilization below 30%—ideally around 10%.
3. Length of Credit History (15%)
The age of your credit accounts matters. The longer your accounts have been open, the better. If you’re new to credit, patience is key as your accounts age.
4. Credit Mix (10%)
Lenders like to see a variety of credit types. Having a mix of credit cards, installment loans, and retail accounts can help demonstrate your ability to manage different kinds of credit responsibly.
5. New Credit (10%)
Opening too many new accounts or having too many hard inquiries in a short period can hurt your score. Be selective about applying for new credit.
As I mentioned in the video, the first two have the highest percentage, so put in all the work you can to ensure this is well taken care of.
Want a more detailed breakdown? Watch the video below! Don’t forget to leave a comment and share it with someone aiming to grow their credit score.
BONUS: How to Become Debt-Free (and Stay That Way!)
In addition to sharing my credit score tips, I’ve also created a FREE Debt-Free Guide for anyone drowning in debt—whether it’s $10,000 or $50,000+. Here’s a sneak peek at the steps:
Steps to Becoming Debt-Free:
- List All Your Debts
- Organize your debts to understand what you owe.
- Use Cash, Not Credit
- Avoid adding to your debt by paying for new purchases with cash.
- Negotiate with Creditors
- Reach agreements with creditors for manageable payment plans to avoid harassment.
- Live on 70% of Your Income
- Allocate 20% to paying off debt and 10% to savings.
- Save While Paying Off Debt
- Don’t wait until you’re debt-free to start saving. Build financial resilience as you reduce debt.
- Increase Savings and Investments Gradually
- As debts decrease, channel more income into savings and investments.
- Earn More and Spend Wisely
- Boost your income and stay disciplined with spending limits.
- BONUS: How to Become Debt-Free (and Stay That Way!)
Get the Free Debt-Free Guide + Excel Planner
This FREE guide and planner are designed to help you eliminate debt within 3-5 years, even on a low income. It includes:
- A step-by-step plan tailored to your financial situation.
- An Excel sheet to map out your goals and track your progress.
Click here to download your FREE Debt-Free Guide now!
Share the Knowledge
Don’t keep this knowledge to yourself. Share this article with someone who’s ready to take control of their credit score or tackle their debt today!
If you need one-on-one coaching with me to discuss your wealth and mindset goals or debt-free strategy, click here to book a session with me.
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