DR 017: Credit Scores 101

This is the tenth day in our 31-Day Money Challenge. Over 31 days we’ll publish 31 podcasts, each designed to help you move closer to financial freedom. Yesterday I answered reader questions on everything from timeshares to social security. In today’s podcast, we look at the importance of credit scores and how they are calculated.

Sponsors: The 31-Day Money Podcast is sponsored by Betterment and Personal Capital. Betterment and Personal Capital are two tools I use to make investing easier, less expensive, and more effective.

Topics Covered

  • How important is your credit score?
  • Learn how a good credit score can save you $90,000 or more over the life of a mortgage.
  • How are credit scores calculated?
    1. 1. Payment history (35%)
    2. 2. Credit utilization (30%)
    3. 3. Inquiries (10%)
    4. 4. Length of credit history (15%)
    5. 5. Types of credit used (10%)
  • Why your income doesn’t affect your score.
  • How can you monitor your score for free?

Episode Resources

In this episode I mention the following resources:

Listener Question

JulieAnn asks: “Sooooo blessed I found your site! Love the pod casts…short, concise and so educational! What about single income households? Limited money coming in…Can we still put these and other tips in place? Just an idea.”


In this episode I talk about whether people working minimum wage jobs are stuck and hopeless, as this CNN reporter claims.

Day 11: How to improve your credit score (interview with Maxine Sweet of Experian)

Published or Updated: July 29, 2014
About Rob Berger

Rob founded the Dough Roller in 2007. A litigation attorney in the securities industry, he lives in Northern Virginia with his wife, their two teenagers, and the family mascot, a shih tzu named Sophie.

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