Question: What’s The Best Way To Repair Bad Credit?
Answer: If you’re following my blog and social media accounts, that should be the least of your worries. The honest truth is my credit score could be a 540 and I wouldn’t have a care in the world about it knowing what I know now.
Your focus should not be on improving a credit score, but, rather, improving your bank account to the point that you won’t need to rely on a credit score in the first place.
The sooner you realize that a credit score is simply an”I Love Debt” or, even better, an ” I Love Making Monthly Payments” score, you’ll develop similar thoughts towards maintaining or raising your credit score.
Don’t believe me? Take a look at this graphic which was pulled directly from the FICO website.
Those are the 5 factors that go into your credit score.
- 35% Debt Payment History
- 30% Amount of Debt Owed
- 15% How Long You’ve Had Debt
- 10% Mix of Debt
- 10% Amount of New Debt
It all goes back to debt, so the real question you must ask yourself is, “Why am I so concerned with being able to get more debt instead of building wealth?”
It’s possible to buy a home with no mortgage payment. It’s possible to buy a car without a car payment. It’s possible to buy new clothes on something other than a Macy’s credit card. It’s a weird concept in the modern area called “Having Actual Money”.
However, if you are still adamant on adding more debt to your life, there are really only 3 ways to raise your credit score:
- Allowing the required time to pass.
- Cleaning up your old debt by paying on it.
- Reporting inaccuracies on your credit report .
Again, focus more on wealth building strategies more than credit building strategies. If you don’t know where to begin, book a session with one of our Certified Financial Trainers below.