Let's Talk. Credit!

Your credit is one of your biggest weapons when it comes to buying power. Today I will discuss a bit about Credit and the factors that makeup credit. 

Your credit is weighted based on these five elements:

• Payment History
• Amounts Owed
• Length of Credit History
• New Credit
• Credit Mix

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There is no secret formula to beating the credit game. If you pay your bills on time, payoff balances, and keep utilization low then your credit score will be fairly healthy. There are 3 Credit Bureaus where you can get a copy of your credit report on an annual basis.

1. Equifax
2. Experian
3. Transunion 

Take advantage of these free resources, Reviewing your credit report is not a hard inquiry on your credit report. Additionally, reviewing your credit report allows you to see if there are any negative remarks on your credit report. These are the most accurate versions of your credit. 

However, there are additional free resources such as Mint, Credit Karma, and your Bank normally offers a credit score on a monthly or quarterly basis if you have a credit card with them.

• Payment History shows your ability to pay on time.
• Amounts Owed shows your current debt balance or utilization. This should be kept under 30%.
• Length of Credit History is how long your accounts have been open. The longer the better.
• New Credit is new accounts.
• Credit Mix is your mix of credit ranging from auto loans, student loans, home loans, and credit cards. 

Share this posts with a friend who needs to some credit 101.