Life Kit Improving Your Credit Score
Nov 10, 2020
Tiffany Aliche, also known as "The Budget Nista," is a financial educator and author passionate about personal finance. In this discussion, she breaks down the essentials of credit scores, likening them to a GPA for your financial health. Listeners discover how payment history and responsible credit use can boost scores. Tiffany also highlights systemic biases in credit scoring that affect marginalized communities and shares actionable strategies like timely bill payments and debt reduction to enhance credit ratings. Tune in for practical insights!
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Building Credit Early
- Start building credit early by becoming an authorized user on a parent's card.
- Inherit their good credit behavior, ensuring they pay off the card monthly.
Importance of FICO Score
- Focus on your FICO score, the primary score used by most lenders.
- Paying off your credit card in full each month significantly boosts your payment history, a major component of your FICO score.
Credit Mix and History
- Maintain a credit mix and keep your oldest credit card open.
- Avoid opening too many new credit accounts, as inquiries can lower your score.