August is Credit Awareness Month. Grasping a good understanding about the role credit play in your financial management plan can be the key to building a stronger more structured wealth plan. Here is how you can start to take control of your credit.
First, you should understand your credit score. In order for you to understand your credit score you must first know the two different types of credit scores and the range of the scores and what they mean.
There are two types of credit scores: FICO and VantageScore.
- The FICO score was derived from the data statical analysis used to determine your credit worthiness. FICO gets its name from the Fair Isaac Corporation. Many of your loans and credit establishment for major purchases or loans seeks information from your FICO score to determine you’re your creditworthiness. These credit in are used for home purchases (mortgages), car loans, business loans, etc.
There is a charge to get a copy of your FICO score so the best way to obtain this score is when you apply for credit. During the application process, the agency will provide you the information on your FICO credit score.
- The Vantage score uses different criteria for calculating scores. This credit score is a good way for you to track your credit score in preparation of monitoring it for major purchases. You can get your Vantage score free from apps such as Credit Karma or Credit Sesame. Download one of these apps and use it to stay aware of your credit position at all times.
Next, you should understand what your credit score means. Your credit score is a three-digit number that ranges from 300 (low) to 850 (high). The higher your score, the more likely you are to be approved for new credit or offered a lower interest rate. Your credit score is key to determining which financial products, including credit cards and personal loans, you’ll qualify for and what price you will pay for the products.
To learn more details about credit, the types of credit scores and tips on improving your credit, click the link below to grab a copy of my latest book, “Girl Hold My Purse” and study chapter 6 titled “Get Your Credit Straight”.
https://bit.ly/holdmypurseBook
As a bonus, I want to give you a FREE gift during this month. For every copy of the book that you purchase during August, I will sign each book and ship it to you for FREE!
Click the link to get your signed copy of my book, “Girl Hold My Purse”.
https://bit.ly/holdmypurseBook
Feel free to share this link with your family and friends.