we're going to discuss credit today.
Credit is so important to your financial flexibility.
it can help you qualify tobuy a home get good interest rates on your car loan or credit cards it caneven help you get perks like reduced rates on your insurance and get acceptedto exclusive reward programs for frequent flyer miles.
How would you liketo know the secret of how your credit score is calculated? hey it's Invest Diva and your coach Kianaand I'm going to give you the secret to good credit and how your credit score iscalculated in just a few seconds but before we get started don't forget toreserve your spot on my upcoming MasterClass: 3 secrets to making your moneywork for you.
You can get the link by subscribing on www.
you can also find the direct link in the description area on YouTube and on myprofile on Instagram.
back to your credit calculations: credit reporting companiesuse a complicated formula to determine a score that ranges from zero to 850.
I'mgonna walk you through the five different factors that help creditcompanies determine your credit score once you understand each of thesefactors that determine your credit you will be able to quickly make decisionsto raise your credit score and fix your credit score you'll also be able toeasily maintain your finances to keep your credit score high.
the first and foremost important category is payment history credit companies generallydetermine about 35% of your score based on your payment history which is just assimple as it sounds make your payments on time and never letyour payments be more than 30 days late or it will affect your scoreapproximately 35% of your score is based on your payment history so it is so soimportant that you make your payments on timethe second factor they use to determine your credit score is your debt toavailable credit ratio credit companies look at the total amount of creditavailable and then look at what percentage of that available credityou're using look at all of your revolving credit lines such as creditcards lines of credit and store cards the best place to be is somewherebetween 0 to 20% but you absolutely want to keep them below 50% or creditcompanies will significantly ding your score credit companies like to see thatyou're responsible on how you're using your credit and that you paid offregularly about 35% of your credit score is determined by a couple of factorsincluding the length of your credit history which isessentially how long you have had active open credit accounts and the number ofaccounts you have open having a number of credit cards or revolving accountswith low balances is excellent for your credit score and one of the most commonfactors of high credit scores along with paying your bills on time if you'relooking to repair your own credit make sure you get a copy of your creditreport.
negotiate settlements on all of your charge upsand open some credit accounts using secured credit cards if you have toobviously and pay down your balances and keep them below 20% of your credit limitif you pay your bills on time and follow these simple steps you will be on yourway to a credit score rating above 700 or more so now you're on your wayto an A+ credit for more on how to make your money work for you and all thesecool stuff click on the link in the description area and reserve your seatfor my next webinar: 3 secrets to making your money work for you thank you somuch for watching and Invest Diva and remember, make your money work for you.