Day 14: Get Your Credit Score
Posted by LearnVest on March 4, 2010 at 10:59 PM
Yesterday, you got in-the-know and figured out what a credit score is and that you have one. Now, here’s your big chance (i.e. your big non-optionalchance) to check your credit score.
Your credit score is the number associated with your credit report. There are five main things that go into that three-digit
1. Whether you pay your bills on time. (Do you? The answer should definitely be YES. Remember those reminders you put in your calendar?)
2. How much you owe, relative to your credit limit. (Your credit limit is what you can spend on all of your credit cards combined. Ex. $3,000 per card and you have 2 cards, your credit limit is $6,000). You want there to be a big difference between the limit the bank has put on your credit card and what you actually spend. In other words, don’t “max out” your credit cards.
These three factors account for about 35% of your credit score:
1. How long have you had credit? (A credit card in your own name is a must-have!)
2. Have you applied for a lot of new credit recently? (Trying to get twenty new credit cards at once is never a good idea.)
3. What does your credit mix look like? (Is it made up of credit card debt or student loans?)
These things are all within your control, and we especially want you to get the first two correct because they account for the majority of your score! We want your score to climb above 760. So, if you’re not happy with your credit score, you have the power to make it better. And remember, you can personally check your credit score as often as you want.
|Go toCredit Karma's site. It’s that easy. Credit Karma is a LearnVest-recommended site that gives you your credit score FOR FREE. LearnVest loves it because it provides a quality service at no cost to you.|
Action Time: 2 minutes
Follow the simple steps on Credit Karma to get your credit score. If you need some extra help, see Steps 4-7 in the “Check My Credit Report and Score” checklist.
Action Time: 3 minutes
Pull up your calendar of choice and set up a reminder to check your credit score every three months. And when that reminder comes around, DO IT. (You'll love watching your credit score increase. It's even more fun than losing weight.)
Action Time: 2 minutes
|LearnVest’s very own Alexa Von Tobel (CEO) sits down with Ken Lin, CEO of CreditKarma, to discuss credit basics and how building a good credit score can save you HUNDREDS of THOUSANDS of dollars! Click here for the complete podcast.|
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