Скачать или смотреть Why is Credit Important? How to Understand & Improve Your Credit Score! (FAST)

Hi, I am Katie MacDonald, owner of MacDonald Wealth Management. I am CFP, CRPC, CDFA certified. Beyond my business, I want to provide financial advice to help you gain financial confidence. Looking for help with financial planning free of charge? I am here to help!
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In this video I am going to share with you the importance of credit and why you should care about building good credit!

All About Credit Scores:
Whether you are buying a car or purchasing a home credit has become an integral part of our everyday lives. It is difficult to imagine functioning in today’s world without credit.
Having easy access to credit goes hand in hand with having a good credit score so it is important to know how to maintain a positive credit score and credit history.
#1 The importance of having a good credit score
Your credit sore is based on your past and present credit transactions. Borrowers with good credit are presumed to be more trustworthy and may find it easier to obtain a loan and often at a lower interest rate. Credit scores can even be a deciding factor when you rent an apartment or apply for a new job.
#2 – How is your credit score determined
The three major credit reporting agencies (Experian, Equifax, and TransUnion) track your credit history and assign you a corresponding credit score known as your FICO score
The most common credit score is your FICO score a three-digit number that ranges from 300-850.
#3 – What is a good FICO score
For the most part this depends on the lender and your situation but individuals with scores of 700 or higher generally are eligible for the most favorable terms from lenders. Those with scores below 700 may have to pay more of a premium for credit. Finally, individuals with scores below 620 may have trouble obtaining credit.
#4 – Factors that can negatively impact your credit score
A history of late payments, Not enough good credit, Too many credit inquiries and uncorrected errors on your credit report.
Student Loans can have a significant impact (positive or negative) on your credit history and score. Your main goal when paying back your loans is to make your payments on time. Being late with even one or two payment can negatively affect your score.
#5 – Fixing credit report errors
Because a mistake on your credit report can negatively impact your credit sore it is important to monitor your credit report from each agency on a regular basis and make sure all versions are accurate.
If you find an error on your credit report your first step sis to contact the credit reporting agency, either online or by mail. The agency usually must investigate the dispute within 30 days of receiving it. Once the investigation is complete they must provide you with written results. IF there was an error they must remove or correct it and you will receive an updated version of your credit report for free.
If you believe the error is the result of identity theft you may need to take additional steps to resolve the issue such as placing a fraud alert or security freeze on your credit report. You can visit the Federal Trade Commission (FTC) website at ftc.gov for more information on identify theft protections that are available to you.


What makes up credit:
30%- making payments on time
30%- how much available credit vs amount used
20%- history of your accounts
10%- service credit (medical, utilities, etc.)
10%- high risk credit; payday loan, rent a center, high interest credit

Links discussed:
FTC.gov
https://www.annualcreditreport.com/in...

Investment advice offered through MacDonald Wealth Management, LLC, a Registered Investment Advisor.

#CreditScore #Credit #ImproveYourCredit