Personal Finance Strategies Season 3 Episode 3 Increasing Your Credit Score

In season 3 episode 3 of Personal Finance Strategies, viewers are given insights on how to increase their credit score. The episode kicks off by discussing the importance of having a good credit score and how it can affect your financial future. Credit scores can affect everything from getting approved for a loan to securing a competitive interest rate on a credit card.

The episode highlights the first step towards increasing one's credit score which is to know what it is. Many people are unaware of their credit score, but it's important to keep tabs on it as it can fluctuate depending on how much credit is being used and paid off. The episode advises viewers to obtain their credit report from the three main credit bureaus, Equifax, Experian, and TransUnion, in order to get a comprehensive understanding of their credit standing.

The episode goes on to explore the factors that impact credit scores and advises viewers on how to improve them. Payment history is a significant factor in determining one's credit score and missing payments can greatly affect it. Viewers are encouraged to pay their bills on time and avoid missed payments as they can stay on one's credit report for up to seven years. The episode discusses the impact of credit utilization which is the amount of credit being used in comparison to the credit available. High credit utilization rates can hurt one's credit score, so it's important to keep the utilization below 30 percent.

Personal Finance Strategies also takes a closer look at the impact of applying for credit. Applying for multiple credit cards or loans in a short amount of time can negatively impact one's credit score. The episode advises viewers to be strategic about applying for credit and to only do so when necessary.

In addition to discussing the factors that affect credit scores, the episode also provides viewers with strategies for improving them. One strategy is to pay off debt and keep credit utilization low. The episode explains how paying off debt can increase one's credit score and how keeping credit utilization low shows that one can responsibly manage credit.

Another strategy mentioned in the episode is to maintain a healthy credit mix. Having a mix of credit products, such as a credit card, personal loan, and a car loan, can show lenders that one can handle different types of credit. Maintaining a healthy credit mix can positively impact one's credit score.

The episode also advises viewers to be patient when it comes to increasing their credit score. Credit scores can take time to improve, but it's important to remain consistent with good credit habits and avoid making the same mistakes that negatively impacted their credit in the past.

Personal Finance Strategies season 3 episode 3, Increasing Your Credit Score, is a valuable resource for anyone looking to improve their credit standing. The episode's insights and strategies can help viewers take control of their credit and achieve financial goals that may have been otherwise unattainable.