Giving credit to your credit score

Everyone is always telling us to check our credit scores and there’s so many free resources out there. Even my five year old was on his IPAD and told my husband that he was checking his credit score. 😂

Credit scores are now used more than ever and go outside of credit cards and loans, to where now employers can screen your credit in the hiring process, and even your insurance rates can be affected. But does everyone know how you got the score you got and how to improve it if you don’t like the number you see? 👀

I remember trying to get a car loan in my early twenties, and being surprised when only one lender approved me with a 16% interest rate. I was really embarrassed about my situation and how out of control my finances were that I couldn’t even get a loan with a decent interest rate(which actually ended up being a good thing because it forced me to take a look in the mirror and get my shit together). 💩

At the time, I didn’t understand health insurance and had some medical bills go to collections, along with a few utility bills from when I was a renter and thought roommates had paid. I also had 3 credit cards that were all basically maxed out and a bazillion dollars in student loan debt. Of course the banks didn’t want to lend to me, nor should I have even been looking at buying a gently used car, but there I was. 🙄

A few months after this experience, I went through the Dave Ramsey total money makeover, and made several changes, including paying off the $15k of credit card debt and all of my small collections that were around $1,000 in total. My score immediately jumped from the low 600’s to 700’s, and within 3 years, it was mid 700’s when we bought our first home. I have continued to pay off my credit card at the end of the month and pay all bills and keep my DTI under control, which got me above 800 a few years ago. 🎉

If you don’t know your score, start there with a free report. If you do know it and don’t like it, start working on a s.m.a.r.t. goal to get where you want to be. 💪🏼

Follow me on Instagram @my_semi_basic_life

#creditscore #creditrepair ##financialliteracy #debtfree #debtfreecommunity #debtfreejourney #daveramsey #financialfreedom #financialindependence

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Author: mindytempleton7371

Tales of my imperfect journey towards financial freedom. Paid off $165,000 in debt and now working on building wealth instead! Grateful for: 👨‍👩‍👧‍👦+🐶+🏡+🧘‍♀️+🏃‍♀️+ 📖 +🥗 #debtfree #financialfreedom #minimalist #frugal #realestateinvestor

2 thoughts on “Giving credit to your credit score”

  1. DTI is your debt to income ratio, and it’s calculated by dividing your monthly debt payments by your monthly gross income. Lenders look at it when they are evaluating whether or not to loan you money. Most mortgage lenders won’t lend anything that would put you above 43% (varies by company, but 43% is average). So if it’s above that threshold, you could be declined.

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