My Credit History !

I want to start by stating that I am not a financial advisor ...... AT ALL ! I was just really fucked up in the game. At the age of 20 all I had to show as an adult was 2 over-drafted bank accounts. Mind you at this point I had no longer been living with my mother. Let’s start with the fact that I had 2 jobs. I was a receptionist at an office for message therapy and bartended on the weekends. I made good money off the books but I didn’t feel the need to apply it to bank accounts because it was easier to keep cash in my purse.  At that point having an account wasn’t effecting me but what I didn’t realize was that my actions then would effect me as a mature adult in the future. In my early 20s I was just renting rooms and really didn’t need a credit check to do so. I  wanted to stop working dead end jobs and decided to go to get licensed in Medical Assisting. I landed my internship and started working at a medical office. Mind you now I am sitting on those same 2 over drafted accounts and a student loan of 8,000. 

The more checks I received from my new job, the more I saved up and, the more I wanted to execute buying a car and possibly moving. I finally had enough saved for a down payment on a car.  Toyota dealership! I was in the building, not realizing that down payment wasn’t the only thing they needed from me. I was immediately declined an approval for a new car. I was crushed! When I tell you I cried, I cried to the point that my eyes had swelled up like a fish. After a day of crying I had to figure out what this credit thing was. What is credit? Well let’s start with this ....... YOU ARE AS GOOD AS YOUR CREDIT SCORE IN THIS WOLRD ! What do I mean by this? Everyone is judged by their credit score when applying for something like a mortgage loan, new apartment, car, even a job. At this point the world revolves around credit scores. 

So how is credit score determined ? Below I created a list on what I have learned to earn a credit score I am proud of. This list includes some tips and tricks that will help credit loaners see you are a perfect candidate for a high score! 

1. Simultaneously opening New Credit Account ; it is best to open up credit accounts nice and slow. Opening credit cards all out once send a red flag. It kind of indicates “Hey I am highly reliant on borrowing to keep up with spending” 
2. 30% rule ; Credit Utilization is crucial to the increase process. Make sure to always utilize about 30% of your available credit. This allows breathing space just Incase of any emergencies and allows you a better chance of paying on time.
3. History ; payment history is like a rap sheet. It includes hen your payments are done ✅ so making sure your payments are all made on time is super important. When you open new credit lines they review if you are a candidate to become a cold holder. Late payment can be decremental to your score. I mean would you allow someone borrow money that has a rap sheet of late payments? 
4. Value ; Not all debts are created equal. Some credit lines have bigger impacts than others when it comes to your score. Mortgage on a house for sure will have more impact than a credit line of $500 from Victoria Secret. Checking the value of each credit line you choose to take is an important key. 
5. Length of Credit History; Now the simplest way I can put this is that someone with 5 years of timely payments has an advantage over someone who’s had a credit history of 1 year. Longer you hold a good record the chances you will be approved from a loaner for when you buy that dream house. 

I worked really hard to boost my credit and to better my bank account situation 😫 At age 26 I am now a proud 7 line card holder with a credit score of 710 and 3 bank accounts with both savings and checking. If you are young I suggest really think about opening a line. It is truly a big responsibility and you don’t want to work just to pay debt throughout your mid 20s and 30s. Taking care of your credit is important, now more than ever.