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.
- 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. Payment history (35%)
- 2. Credit utilization (30%)
- 3. Inquiries (10%)
- 4. Length of credit history (15%)
- 5. Types of credit used (10%)
In this episode I mention the following resources:
- myFICO Mortgage Calculator
- 0% Credit Cards with Approvals by Credit Score
- Interview of FICO credit expert Tom Quinn
- myFICO Score Watch
- Credit Sesame
- Credit Karma
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)