HOW TO FIX BAD CREDIT AND BUILD CREDIT FAST

You’ve all heard the term “credit score.” You understand that folks can have a good credit score, an average credit score, and even, a poor credit score. Most of you understand that, in some mysterious way,  credit scores determine one’s ability to obtain an auto loan, a mortgage loan, or a credit card. You may even know the numerical value of your credit score.

But, a credit score isn’t like an IQ.

We aren’t born with it. We didn’t take a test, so where did it come from and what is a credit score?

Enter Fair, Isaac and Company, the founding father of the credit score, also known as the FICO score. The company, founded in 1956, for the purpose of providing analytical and decision making services to the financial community, developed a credit scoring system just two years later. It was not until the latter 1980’s that their credit scoring system gained traction with banks and other credit providers. The FICO score is now the “gold standard” for all 3 major credit reporting agencies and the lenders using these credit reports to evaluate the credit risk of prospective borrowers.


 

Today I give you a few tips and tricks to fix your bad credit or build credit fast, ya know for times when you need credit immediately.

 


 

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Comments

  1. When I was a kid I remember that my grandmother used to say that good credit was more important that having money in your pockets. Having excellent credit is the most important lesson she ever taught me.

    It still puzzles me that many people destroy their credit over buying things that are really not necessary. I think it is sad to see people buy assets that depreciate in value using credit with APY higher than 14%. This is financial suicide. I use credit only for emergencies or to buy things that can make me money like stocks, bonds and even websites if I find a good deal. My credit is excellent. I get approved for mostly everything I apply to.

    • You grandmother was very wise. However, why do you only use your credit card for emergencies? You seem like you got your stuff together and can take advantage of rewards points by sticking to your budget and using your credit card for everything.

      • Hi Dominique thanks for the reply. Currently I do not have rewards or cash back card because incomes in Puerto Rico tend to be on the low side. My bank offers a rewards program for the card I have but it costs like $2 a month. I am waiting to cut down this card’s balance because I used it to buy some investments. I know it is not too wise to invest on credit but the bank offered a 0% APY for one whole year and I took advantage of the offer. I am currently using dividends and other gains on my investments to pay down the card and keep the difference before interests return to their usual double digit rates. After I finish this operations I am considering using the card for daily expenses and paying in full each month to earn some gift cards that can earn me cash backs in Upromise.com for shopping using their affiliate links. That site returns around 10% on some stores if your shop on Tuesdays. A person with Sallie Mae student loans can send those cash backs directly to any loan that is financed by Sallie Mae to help pay down debt which I think is amazing for people that are struggling with student loans issued by this company.

  2. Edina,

    I hope the advice helps a lot of people. I know for a fact that I needed something like this when I was trying to repair credit.

  3. Love this video! Straight to the point. Thanks!

    • URFinanceSimple says:

      I appreciate the comment. Don't forget to subscribe. I break down a other piece to the credit mystery puzzle.

Trackbacks

  1. [...] out a way to fix the issue(s). If your future spouse’s problem is debt, you can look into ways to reduce debt and raise their credit score quickly. You’ll need to order their free credit report and go from there. If your intended spouse has [...]

  2. [...] Enter Fair, Isaac and Company, the founding father of the credit score, also known as the FICO score. The company, founded in 1956, for the purpose of providing analytical and decision making services to the financial community, developed a credit scoring system just two years later. It was not until the latter 1980′s that their credit scoring system gained traction with banks and other credit providers. The FICO score is now the “gold standard” for all 3 major credit reporting agencies and the lenders using these credit reports to evaluate the credit risk of prospective borrowers.Source: yourfinancessimplified.com [...]

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