Credit UP Spend Smarter Budgeting to Improve Your Credit Score

  Welcome
  Establish Your Baseline
  Budgeting to Improve Credit Score
  Managing Debt
  Deleting Debt
  Build Credit
  Congratulations

Score UP Strategies

Increasing your credit score requires multiple strategic moves. We review these here.

There is really no secret in the industry about what is included in the calculation of a credit score. However, there is a massive amount of misinformation and a lack of awareness and that is primarily what this course intends to address.

Your credit score is a reflection of your financial behavior with other people's money. The more trustworthy, the more reliable you are - the higher your score. This score helps others who you ask to loan you their money, to decide if they will lend it to you, and what risk level (their interest fees) they will lend it to you at. The higher the interest they charge, the less they believe you show the reliability to repay. High-interest fees are both penalizing, and a safety net for the lender. Higher fees mean they get more of the unpaid debt up-front, so if you do default, they are not out as much of their capital since more of it came in with the extra interest fees. 

A higher credit score is the why one person pays $250/month to drive a new Mercedez, while another pays $375/month to drive a 10-year old Kia. In the end, you can have a nicer lifestyle on less money - if you have a higher credit score.

Measured Behaviors that Impact Your Credit Score

Each segment of the credit wheel displays the behavior measured and how important it weighs into your score.

Payment history measures your on-time payment behavior.

Debt measures the amount you continue to owe the lender in comparison to the limit they have allowed you.

Credit Length measures how long you have been managing debt, your debt management maturity.

New credit measure how many new cards you have opened, and in what time frame (for example, 10 loan applications within 3 days)

Types of credit measure the mix of loan types you have been trusted with (revolving, secured, unsecured, and so on)

This course will address all of these behaviors with a focus on strategies that impact the two behaviors that are most within your control that also have the greatest impact on your credit score: Payment history and debt.