How Improving Your Credit Score Positions You For Wealth
I enjoyed myself and the viewers who tuned in to this week’s Money Monday. Here’s a Hump Day recap of what we covered. I started off with a question:
❓❓Would you rather have $850,000 liquid cash or an 850 credit score? ❓❓
Think about it…
I’ll tell you what I’d rather… BOTH!!! I’d prefer to use that cash to invest and that #goodcredit to make major purchases. I’ve written about this in my book 10 Things Every Woman Should Keep In Her Purse. Bottom line, if you weren’t born into money, building your savings AND your credit are important.
I got some great questions in my inbox that I discussed. I selected five to discuss during the show. You can hear the deets when you listen to the video. Here’s the quick rundown of what we discussed:
#1 Reason to build or rebuild your credit
- You want to put yourself in the position to have access to other people’s money. Whether that’s to buy a car, a home, to start or grow a business. I want you to keep your liquid assets because that puts you in a better position to invest.
#2 Why Credit Karma isn’t an accurate credit score
- It’s great for monitoring or knowing if there’s been a change to your report. However, it shows your VantageScore and not your FICO score which is what you need if you’re purchasing a home or a car. Also, It only has your information from two credit bureaus – TransUnion & Equifax. Also, if you need to dispute an account, they don’t give you access to account numbers. Click here for my recommendation – #Identity IQ.
#3 What should you do if you want to improve your credit?
- Do not be late on any more payments. Put everything on auto payment. Make two payments monthly when you can.
#4 How do I get a credit card when I keep getting denied?
- Give yourself some credit. Get a secured card. Start with at least $500 and increase it every 3 months. Click here to check out Credit Strong. Credit Strong helps build your credit. Establishing credibility. Try not to go over 30% utilization of any of your cards.
#5 With great credit, do you think you should put down 20% on a home loan?
- It depends on the type of property you’re purchasing. Is this an investment property or one that you plan to make your primary residence? Are you going for a FHA loan (they’re more selective about the types of properties that you’re getting) or a conventional loan (these are the types of loans you’d need for homes that will require a lot of repairs)… Are you trying to get rid of your PMI? When you put down less than 20% then you’ll have that property mortgage insurance factored in over the life of the loan. If you put down 20% then that takes care of that from the jump, lowering your payments.
Watch the replay so you can hear the other credit hacks I shared so that you can add some value to your purse!
We’re already amped about next week’s Money Monday on March 29, 2021. We’ll be sitting down with one of my fave #bossbabes Claudienne Hibbert who’ll be sharing How To Use Real Estate To Pay Down On Student Loans.
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