Do You Know Your Credit Score? Why You Should and How to Repair It…

Hi everyone,

Hope your week is off to a great start and you’re enjoying the holiday season!

I’d like to discuss a topic I discuss every day with my clients. A topic that everyone should have a basic knowledge and understanding of as not only does it impact what is likely the biggest purchase of your life (a house), but it also affects countless other things you buy and use every day.

Home loan/mortgage.

Credit cards.

Car loans.

Student loans.

Other retail loans.

Auto insurance.

Home rentals.

Countless other things you buy.

And given we’re right in the middle of the holiday season with spending in high gear, now is the perfect time to discuss your credit score!

Your credit score affects not only your ability to qualify to purchase items, but also the interest rate you’ll pay.  If you have a lower credit score, you’re paying more interest than those with higher credit scores needlessly wasting money that you can spend on other items.

A few random thoughts about your credit score.

If you do not know your credit score… you should.

If you’re using Credit Karma to check your credit, just know they do a great job with marketing, but your credit score could actually be higher or lower than what you’re given.  There are other more accurate methods to obtain your credit score.

Credit scores are monitored by three credit bureaus: Experian, Equifax and Transunion.

If you do not know your credit score, please contact your bank or credit card for options to do so.  You should pull your free annual credit report at www.annualcreditreport.com to see if you have any open/unused lines of credit and what is on your credit report that may need your attention.  You may be surprised what you find.

Credit score ranges are typically described as:

Exceptional     800-850

Very Good       740-799

Good               670-739

Fair                  580-669

Poor                300-579

Your credit score is determined by how well you manage money owed, new credit, length of credit history, payment history and your credit mix as well as your debt to credit ratio.

You should seek to either understand, educate yourself or seek credit counseling if any of the following apply to you:

• If you do not understand how credit works.
• If your credit score is less than 640.
• If you’ve had late payments, divorce, collections, bankruptcy, repossession or a foreclosure.

In Florida, a state law was passed where students entering grade nine in the 2023-2024 school year, will be required to earn credit in personal finance literacy and money management.  I think this should be taught in every school in the United States… this is an invaluable resource to help your children not only understand credit, but utilize their financial resources more responsibly and attain the American dream – buying a home!!

When buying a home, a score of 580 is needed for a VA and FHA loan and 620 for conventional financing.  There are minimum credit scores for countless other applications and purchases.

I have international clients that do not have a credit history in the United States.  Also, I have a fair amount clients with bad credit due to no fault of their own.  And I have clients that like to pay cash for everything… which is AMAZING! But they have no credit history…

The system is set up to where you need to obtain multiple lines of credit, use it responsibly and do so without going into debt and carrying a balance maintaining a good debt-to-credit ratio in order to have a high credit score.

Random thought… do you have children?

Did you know that you can give your young children a credit card on your account in their name with a smaller credit limit assigned to their Social Security Number and they can piggy back on your good credit and be ready to buy their first home sooner than later!

If any of the previously discussed topics apply to you, you should know that It is something that can be improved and maintained with simple steps and can drastically improve in just a short 4-6 months!

I am a preferred vendor with 360 Credit Consulting where you can get a free consultation and a special offer.  Please do not hesitate to reach out to me for further details.

And if you’re interested, we can discuss how I can help you sell your home and also help you get loan-ready by introducing you to my preferred lenders to help you buy your next home or investment property!

Thanks for your time and have a great day everyone!!!