5 Steps for Improving Your FICO Score
As you continue preparing yourself to become the best woman you can be, make sure you incorporate credit scores in your plan. Depending on your life experiences, the topic of credit reports and scores will either make you smile…or become nauseous. No matter which one you identify with, one of your overall goals should be to make your credit marriage-worthy.
You may be thinking to yourself…“Why does my credit have to do with relationships?” Well, I’m glad you asked…
Finances are consistently one of the top reasons cited for divorce among couples. Financial irresponsibility undoubtedly plays a big part in the process of couples reaching the decision to divorce. Your credit report is a financial transcript that illustrates how responsibly you manage a subset of your finances. I often compare a credit report to an academic transcript. An academic transcript shows all of the classes you’ve taken along with the grades earned in each class. Your credit report does the same for your financial accounts and performance. Your credit score is nothing more than a GPA for your financial performance.
Your credit rating is very important as a future spouse because it demonstrates a level of financial responsibility. Don’t fret if you aren’t where you want to be, I’ve provided 5 Steps for Improving Your Credit below:
1. Start by ordering your credit reports – Visit http://www.annualcreditreport.com or http://www.myfico.com.
2. Examine your reports for errors. Pay particular attention to your personal information, accounts and late payments you don’t recognize.
3. Document errors on your credit report so they can be corrected or deleted. All errors must be investigated and corrected within 30 days according to the Fair Credit Reporting Act (FCRA).
4. Create a debt elimination plan so you have a start and end date for eliminating the source of negative credit on your reports. Feel free to join my FREE $250 Million Debt Challenge where we are fighting debt $1 at a time. www.250debtchallenge.com.
5. Use credit responsibly. Add stability to your credit file by paying down debts and re-establishing credit.
If you have really bad credit or even filed for bankruptcy, don’t let your credit status go dormant. A secured credit card offers those with no credit, and those rebuilding their credit, an opportunity to start over and establish a new and solid credit history.
Managing your credit wisely creates a healthy financial environment for you and your future family. Don’t take it for granted! Start today by changing your mindset to want to improve in the area of managing your credit.
About the Contributor:
Kenny Pugh is a Life & Relationship Strategist, Author of ‘Can You Do It Standing Up?’, Speaker, HLN Contributor, sought-after speaker on finances, singleness, relationships and life. He is also the visionary behind KTP Financial, LLC (www.ktpfinancial.com). You can find more information about Kenny at www.kennypugh.com. Also, follow him on Facebook at www.kennypughfanpage.com, on Twitter @mrkennypugh and on Instagram/YouTube at Kenny Pugh.