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[ad_1] UPDATE: Some offers mentioned below have expired and/or are no longer available on our site. You can view the current offers from our partners in our credit card marketplace. DISCLOSURE: Cards from our partners are mentioned below Article originally published July 8th, 2021. Updated December 12th, 2022. You may get utility bills, department store sales, the occasional check, maybe a birthday card, through your mail slot. Have you also been receiving multitudes of pre-selected credit card offers in the mail? What are those and why are you getting them? Let’s check it out. Pre-Qualified Credit Card Offers A pre-qualified credit card offer is when a credit card issuer prescreens your credit profile and feels it is fit to be approved for their credit card. The way they let you know that is by sending you a pre-qualified credit card offer in the mail. Being pre-approved or pre-selected, whichever term they may use, makes you more likely to get approved for the card, should you apply for it. If you get such an offer in the mail, it means that the credit card issuer prescreened you to see if you qualify for their credit card. This is what credit card issuers do. They have a certain criteria consumers need to qualify for their products. Then, they ask the credit bureaus to get them a list of all consumers who fit these. For example, it could be: consumers who have a credit score in a specific range, have no new accounts within the past 2 years, have no late payments, etc. The credit card issuers make a list of all consumers who fit the bill and then mail out a credit card offer to all consumers on the list, saying “you’re pre-qualified for this offer.” That means that according to the criteria the credit card issuer has, you qualify for the offer they sent you. And your chances for getting approved for the credit card are a drop more than anyone else. FCRA Restriction and Firm Offer of Credit You might feel like there’s a breach of confidentiality going on here. The act of a credit card issuer getting confidential information about a consumer from the credit bureaus is basically a company disclosing private info to a third party. The Fair Credit Reporting Act (FCRA) does restrict the credit bureaus from disclosing information on your credit report to third parties without the consumer’s consent. However, there are some exceptions. One exception to the rule is when a Firm Offer of Credit is provided. The firm offer of credit applies to situations where the creditor requests access to your private info from a second party without your consent. This means that as long as the criteria you were screened for remains the same, and that everything on your application makes sense, such as your income, expenses, and housing, then the creditor must accept the same credit card terms if you apply for it. However, if you go onto a website that has a tool that can tell you if you prequalify for an offer, since you’re the one authorizing the issuer to review your credit report, by law, the issuer does not have to offer you anything in return for having looked at your credit. So, the firm offer of credit won’t come in when using the website tool. Same goes for when you apply for a new line of credit. If you’re the one asking for your credit report to be reviewed, the creditors don’t owe you anything. Pre-Qualification Tools Let’s get back to the website tool we mentioned just above. Besides for the prequalified offers you get in the mail, there are many online tools, mostly on the banks websites, where you can check to see if you prequalify for a credit card offer. When you use said tool, the banks do a soft pull to review your credit to be able to report if you’re pre-qualified for a credit card or not. The soft pull does not harm your credit. Following is a list of banks you can check online to see if you prequalify. Amex – Personal / Business Bank Of America Capital One Chase Citi Discover HSBC Blue Cash Preferred® Card from American Express Apply Now on American Express’s secure website Card Details Intro Apr: 0% for 12 months on purchases Ongoing Apr: 17.74%-28.74% Variable Balance Transfer: 0% for 12 months on balance transfers Annual Fee: $0 intro annual fee for the first year, then $95. Credit Needed: Excellent-Good Rates and Fees Snapshot of Card Features Earn a $250 statement credit after you spend $3,000 in purchases on your new Card within the first 6 months. Terms Apply. $0 intro annual fee for the first year, then $95. Buy Now, Pay Later: Enjoy $0 intro plan fees when you use Plan It® to split up large purchases into monthly installments. Pay $0 intro plan fees on plans created during the first 12 months after account opening. Plans created after that will have a monthly plan fee up to 1.33% of each eligible purchase amount moved into a plan based on the plan duration, the APR that would otherwise apply to the purchase, and other factors. Low intro APR: 0% for 12 months on purchases from the date of account opening, then a variable rate, 17.74% to 28.74% 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%). 6% Cash Back on select U.S. streaming subscriptions. 3% Cash Back at U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more). 1% Cash Back on other purchases. Thinking about getting The Disney Bundle which includes Disney+, Hulu, and ESPN+? Your decision made easy with $7/month back in the form of a statement credit after you spend $13.99 or more each month on an eligible subscription with your Blue Cash Preferred Card. Enrollment required. Cash Back is received in the form of Reward Dollars that can be redeemed as a statement

[ad_1] Article originally published July 13th, 2016. Updated December 6th, 2022. Just a few years ago, nearly one in three drivers chose to lease rather than purchase a vehicle. Today, however, less than one in five drivers lease their cars. Why such a dramatic shift? While there are many reasons for this change, the primary cause for this drop in leased vehicles is cost. The combination of the inventory shortage and inflation has resulted in higher new car prices. Higher costs mean higher leasing fees. However, as car prices begin to stabilize, it’s likely many drivers will consider leasing again. After all, leasing typically allows you to obtain a newer car with lower monthly payments. When looking for a new or used car, it’s important to explore your options to determine if leasing or taking out a car loan is the right option for you. Here’s some more information about car loans and average interest rates for used car loans. What Is the Average Rate for a Used Car? No matter what financial institution you get a car loan through, the amount of interest you owe likely depends on your credit score and whether you’re a prime or subprime consumer. The Consumer Finance Protection Bureau divides consumers into four credit tiers based on credit scores. Prime: Borrowers with credit scores over 680 Non-Prime: Borrowers with credit scores between 620 and 679 Subprime: Borrowers with credit scores between 540 and 619 Deep Subprime: Borrowers with credit scores under 540 Looking to Refinance or Buy a New Car? Find the lowest rate when you compare rates from multiple lenders, even if your credit isn’t perfect. Get Started Now Privacy Policy While average used car interest rates fluctuate based on various factors, below is a look at the average rates per credit score for November 2022. Credit score of 750 or higher: 9.56% Credit score between 700 and 749: 10.99% Credit score between 600 and 699: 15.41% Credit score between 451 and 599: 20.43% Credit score of 450 or lower: 22.26% What Is a Good Rate on a Car Loan? The best rates for car loans are reserved for those consumers with excellent credit. These borrowers may be able to find a car loan for 5% or lower. This is considered a very good interest rate. In fact, 5% is one of the lowest APR rates for used car loans. The typical used car interest rate, however, is much higher than 5%. How to Get a Car Loan If you’re considering applying for a used car loan, the first thing you want to do is to evaluate your budget. Carefully calculate both your monthly income and monthly expenses to determine exactly how much you can afford to pay towards a used car loan. It’s also recommended to read a car loan guide to better understand how the lending process works. Next, you want to gather all the necessary documents so you have everything ready when your lender requests them. Below is a look at the most common documents requested by lenders. Proof of identity: You need some official form of identification, such as a state-issued driver’s license or identification card. Proof of residency: Lenders typically want your proof of residency, such as a lease, deed or utility bill. Proof of income: You also need proof of income, including paystubs, tax returns and bank statements. Social Security number: All lenders use Social Security numbers to run credit reports, so be sure you have your number readily available. Finding a Lender While there’s no shortage of lenders you can contact for a used car loan, you may want to start with your local bank. Having a longstanding relationship with your bank may help you obtain the loan you need. You can also contact other banks in your local area to see what auto loan options they offer. You don’t have to stay local, however. There are a number of online lenders that allow you to complete the entire application and loan process online. No matter which lending option you choose, the important thing is to shop around to find the best rates. When comparing lenders, be sure to not only compare monthly payments but also check interest rates and terms. Using an APR calculator can help you compare monthly payments for different loan terms and amounts Know Your Credit Scores As mentioned above, your credit score directly impacts the interest rate on your auto loan. These interest rates, in turn, determine the overall costs to purchase a used car, loan terms and how much your monthly payments are. This factor makes it crucial that you know your credit score and try to keep it as high as possible. Before you even apply for a used car loan, request a free copy of your credit report from all three top credit reporting agencies, Equifax, TransUnion and Experian. If you find any errors in your report, take the necessary steps to fix these errors quickly. Also, take steps to repair any negative issues on your credit report that could be lowering your score. Keep in mind that obtaining a used car loan may impact your credit score as well. Get Your Free Credit Score & Monitoring Plus Weekly Updates From Our 50+ Experts Get It Now Privacy Policy Will a Car Loan Improve My Credit Score? You might think that obtaining a car loan could negatively impact your credit score. The reality is that in many cases, a car loan can actually improve your score. As long as you continue to make on-time payments, a car loan, also referred to as an installment loan, can help boost your score over time. Conclusion When searching for a used car, it’s extremely important to evaluate all your options. For example, compare your lending and leasing options and shop around for the best interest rates. If you’re ready to purchase a used car, start comparing your options today by using Credit.com’s auto loan calculator tools to compare your rates, customize

[ad_1] The full article originally appeared on RickOrford.com and this truncated version has been republished with permission. It’s never too early to start thinking about retirement. In fact, the more you do now, the easier retirement will be. Retirement can be a daunting prospect if you don’t have a plan. For example, do you know how much you’ll get from Social Security? And, will your money outlast you?  You can make sure that you have the money you need to live financially independent in retirement by planning ahead.  11 Things to Do before Retirement This article will cover the 11 things to do before retirement. While much of this can be done on your own, a lot of it should be done alongside a professional.  1. Consider Your Housing Needs Those about to retire should start thinking about whether they want to downsize or move to a retirement community. It’s best to consider your options and decide what’s best for you. If you plan on staying in your home, it’s often best to make sure that it’s paid off before you retire. If not, you’ll be stuck with a mortgage payment that could put a damper on your retirement plans.  It might also be a good idea to consider whether you want to move to a retirement community. These communities have many benefits that can make retirement more enjoyable. For one, you’ll be surrounded by people in the same stage of life as you. This can provide companionship and support during retirement. Retirement communities also offer social and recreational activities to keep you active and engaged. 2. Create a “Retired” Budget Once you retire, your income will likely change. You will probably have less income if you’re no longer working. The budget should include all your expected retirement expenses, such as housing, food, transportation, and healthcare. But don’t forget birthday and anniversary gifts, presents during the December global holidays, or even the odd gift to yourself. Also, don’t forget to include a cushion for unexpected expenses. And don’t forget to account for inflation. These days, prices always seem to go up. So, you’ll need to make sure your retirement income can keep pace. 3. Calculate the Expenses You’ll Have to Make Once You Retire One of the things to do before retirement is to calculate the expenses you’ll have once you retire. These expenses include things like housing, food, transportation, and healthcare. Indeed, costs will be different than they are now. Consider the 50-30-20 rule. This rule suggests spending 50% of your income on essential expenses, 30% on non-essential expenses, and 20% on savings and debt repayment. 4. Save like Crazy Retirement planning is all about saving as much money as possible now to have enough money later. The sooner you start saving, the more time your money has to grow. If you’re not already doing so, start contributing to a retirement account as quickly as possible. Social security will only get you so far. So, the earlier you start saving, the less you’ll need to save each month to reach your retirement goals. Suppose your employer offers a retirement savings plan, such as a 401(k), make sure you’re contributing enough to take advantage of any employer matching contributions. Employer matching contributions are free money that can help you reach your retirement goals faster. Even if you can’t contribute a lot each month, every little bit helps. The key is to start saving now and be consistent with your contributions. 5. Top Up Your Emergency Fund An emergency fund is a separate savings account that you can use for unexpected expenses. Experts agree to save 3-6 months’ worth of money for living expenses. This will help you cover unexpected costs, like medical bills or home repairs. You can open an emergency fund account at a bank or credit union. And, be sure to look for an account with low fees and a reasonable interest rate. 6. Keep Adding to Retirement Savings Just because you’re retired doesn’t mean you should stop saving for retirement. If you can do so, keep contributing to your retirement savings. If you have earned income, you can even continue contributing to your traditional and Roth IRAs. Together with your financial advisors, you can determine the best time to start withdrawing from your retirement savings accounts. 7. Get Out of Debt Debt can be a retirement killer. If you’re carrying a lot of debt, it’s essential to get it paid off before retiring. Otherwise, you’ll be stuck with monthly payments that could damage your retirement plans. One of the fastest ways to get out of debt is to start by reducing your credit card usage. Doing so will reduce your monthly expenses and allow you more money to save for retirement. There are a few ways you can reduce your credit card usage. Use cash instead of credit, Transfer your balance to a lower interest rate credit card (To save on interest), and Set up a budget and stick to it. You can use the debt snowball or debt avalanche method to pay off debt. With the debt snowball method, you first focus on paying off your smallest debts. With the debt avalanche method, you first focus on paying off your debts with the highest interest rates. 8. Seek Loan Forgiveness If You Still Have Federal Student Loans If you still have federal student loans, you may be eligible for loan forgiveness. Loan forgiveness is when the government pays off your student loan debt. You may qualify for loan forgiveness if you work in a public service job or are disabled. To learn more about loan forgiveness, visit the Federal Student Aid website. 9. Plan for Changes in Your Medical Insurance If you’re retired or nearing retirement, it’s essential to plan for changes in your medical insurance. You may be eligible for Medicare, but it’s vital to understand your coverage and its cost. Also, be aware of the gaps in Medicare coverage to plan accordingly. You

[ad_1] You probably already know that your credit report and credit score are important—but why? For a few reasons, but here’s the most important: what’s on your credit report can make or break your applications for loans, credit cards and much more. To get approved for those lines of credit, you need to understand your credit report. Did you know you have more than one credit report? Which is the most important credit report? If you’re looking for answers, we’ve got them. Keep reading to learn more. In This Piece: How Many Credit Reports Do You Have? Credit Scores Versus Credit Reports Why Do People Look at Your Credit Report? What Is the Most Important Credit Report? What Is the Most Important Information On Your Credit Report? How Many Credit Reports Do You Have? Everyone has more than one credit report. Each of the three major credit bureaus—Equifax, TransUnion and Experian—has its own credit file for each consumer. Creditors and other businesses aren’t required by law to report to all the bureaus, or even any bureau. So your credit report will vary from bureau to bureau. The type of report that’s pulled also depends on who requests it. For example, when employers pull your credit report for a background check during the hiring process, they receive a report specifically designed for this purpose. It’s scrubbed of information that id not relevant to your employment requirements. On the other hand, lenders evaluating you for a loan will see a completely different type of report. Some people have no credit reports. These individuals are referred to as the credit invisible. They don’t have credit reports or credit scores because they don’t have credit history reported to any of the bureaus.  Where Can You See Your Credit Reports? You can get a free annual credit report from each of the three bureaus at AnnualCreditReport.com. Typically, you can only access your report once a year. But due to the COVID-19 pandemic, the credit bureaus are offering free weekly credit reports for a limited time. You can also get information about your credit report via our free credit report card. Your report card gives you a grade on each of the factors that impact your credit score, so you know where to improve. And if you want a deeper look at all three of your credit reports, you can sign up for ExtraCredit®. Get insight into your reports today! Credit Scores Versus Credit Reports You might think that you’ll see your credit score on your free credit report. But credit scores and reports aren’t the same, and AnnualCreditReport.com doesn’t provide a credit score.   A credit report is a document—digital or hard copy—that details the information a specific credit bureau has on file for you. On the other hand, a credit score is a three-digit number that rates your creditworthiness based on information in your credit report.  How Many Credit Scores Do You Have? Because your credit reports are different from bureau to bureau, your credit scores will be, too. You can have more than two dozen FICO scores, for example. And FICO isn’t the only scoring entity; many creditors also use VantageScore.  Each credit scoring model has a similar approach to rating creditworthiness. However, each puts slightly more importance on different factors or considers information the others may not. So your actual score with each of the models can be different.  Where Can You See Your Credit Scores? You can get one of your credit scores based on Experian data when you sign up for the free credit report card at Credit.com. And paid subscribers to ExtraCredit can see up to 28 of their FICO scores to get a clear picture of their credit. Why Do People Look at Your Credit Report? Your credit report and/or scores can be pulled for a variety of reasons. Here are some of the most common reasons someone might look at your credit: To evaluate you for credit. Most lenders pull your credit report and score to determine whether they want to lend you money and what rates and terms they can offer. Your credit score and history help lenders understand how risky a borrower you might be. Lenders need your permission to pull credit for this reason, and it goes on your report as a hard inquiry. As a background check for employment. Some employers may pull your credit as part of a background check during the hiring process. They need your permission to do so, and the pull shows up as a soft inquiry on your report. To offer you service. Auto insurance companies and even utility agencies may pull your credit before setting up services. Credit history could impact premium costs or whether you have to put up a security deposit. These are typically considered soft inquiries.  In a rental background check. Landlords may pull your credit when considering you as a potential tenant—and they need your permission. To check your information. You may pull your credit reports yourself to check whether the information on them is accurate. If it isn’t, you can dispute it. These are considered soft inquiries and shouldn’t impact your credit score. To prepare a preapproval offer. Companies can do a soft pull on credit reports before sending a preapproval offer for credit. If you’ve ever received a “You’re preapproved!” offer from a credit card company, this may have happened. Companies don’t need your permission for these types of soft inquiries, but you can opt out of them. What Is the Most Important Credit Report? The most important credit report is the one that’s most accurate and up-to-date. That gives you the best indication of your credit history and credit score. Which Credit Bureau Is the Most Important? No credit bureau is better than the others. However, lenders, landlords and others may not check all three credit reports when evaluating you as a potential borrower or tenant. In those cases, the most important credit bureau is the one they’re pulling information from. Since you can’t predict which

[ad_1] Whether you’re a parent proudly financing higher education for your child or a student signing on the dotted line for your own student loans, it’s important to understand how those debts can impact your future. Do parent PLUS loans affect getting a mortgage, for example? The short answer? Yes, any student loan you’re responsible for can impact your chances of getting approved for a mortgage. Find out more below. In This Piece: Do Student Loans Impact Getting a Mortgage? How Do Student Loans Impact Your Ability to Get a Mortgage? Does Applying with FAFSA Effect Buying a House? Tips for Ensuring a Successful Mortgage Application Learn More About Mortgages Today Do Student Loans Impact Getting a Mortgage? Student loans are a type of debt. So if they’re in your name, they can impact your chance of getting a mortgage in the future. Luckily they can have a positive impact in some situations, especially if you have good financial habits.  It’s important to note that student loans only impact your ability to get a house if you’re the one who’s responsible for paying the loan. Parent PLUS loans affect getting a mortgage if you’re the parent who’s signed as the responsible party, for example, but they wouldn’t impact your child’s chances at a mortgage.  But if a student took out a loan with the parent as a cosigner, the loan impacts both people’s credit. It might impact the chances of getting a mortgage for either party. How Do Student Loans Impact Your Ability To Get a Mortgage? Student loans are often pretty hefty. The average cost of attending a four-year college or university is $35,331, so you’re looking at total loans that are tens of thousands of dollars. That’s nothing to scoff at, nor is it a small mark on your credit report. Find out how it impacts your mortgage application below. Student Loans Reduce How Much You Can Save for a Down Payment You may not have to start paying back your student loans until you’re out of college or a forbearance period has passed. But the time will come when you’ll need to make those monthly payments. Depending on how much you borrowed and what your terms were, student loan payments can be a big hit to your monthly budget. That hit makes it harder to save money quickly for a down payment. While options do exist for mortgage loans with a lower down payment or even no down payment, not being able to save limits your choices.  Mitigate this impact by: Asking your mortgage broker for information about options with low down payment requirements. Applying for down payment assistance to help you cover the costs of down payments. Working to increase your income so you can save more money. Keeping other types of debts and expenses low to facilitate savings. They Increase Your Debt-to-Income Ratio Any amount of debt you have to pay back increases your debt-to-income ratio (DTI). Mortgage lenders look at DTI to understand whether you can afford the payments on any loan you take out. There’s not a single hard-and-fast rule for where your DTI needs to be to get a mortgage, but the Consumer Financial Protection Bureau notes that 43% is a good number to consider. That means your total debt payments monthly, including any prospective mortgage, should be no more than 43% of your total monthly income. Some lending programs may have stricter DTI requirements. Here’s an example to demonstrate how a student loan can change DTI. If you have student loan payments of $500 a month, a car loan of $500 a month and credit card payments totaling $300 per month, you have $1,300 in debt. If you want to get a loan to pay for a home and the loan would result in a $1,200 a month mortgage, that’s a total of $2,500 per month. If you only make $5,000 a month, your debt-to-income ratio would be 50%. That may be too high for a favorable mortgage loan to be approved. If you take out the student loan and keep all the other factors the same and the DTI is now 40%. That’s a better DTI for most mortgage loans. Offset the impact of student loans by reducing your other debts. For example, in the above example, you could work to pay off the credit card debt before you apply for a mortgage. You might also refinance the car loan, bringing your monthly payment down to $300. That would leave you with a 40% DTI. Student Loans Impact Your Credit Score Most lenders do report student loans to one or more of the credit bureaus. This is actually good news, because paying your student loans on time can help you build credit and have a positive impact on your credit score. On the flip side, if you miss payments or end up defaulting on your student loans, the negative impact on your credit can bring your score down and keep you from getting approved for a mortgage.  Keep this from being a problem by paying your student loans on time every month. Consider setting up auto bill pay so you don’t have to worry about accidentally missing a payment. You may also want to find out more about the required credit score to buy a house so you know what you’re shooting for. Does Applying with FAFSA Effect Buying a House? No, completing FAFSA doesn’t impact your credit at all. And it doesn’t mean you’re taking out a student loan. FAFSA simply lets you apply for any potential student financial aid that might be available for you. You’re then offered aid that you can choose from.  More Tips for Ensuring a Successful Mortgage Application Doing a bit of homework before you apply for a mortgage can increase your chances of success. Here are some things to do related to your student loans: Consolidate multiple student loans into one if possible, which will reduce the total amount you have to

[ad_1] This article originally appeared on The Avocado Toast Budget. This post is sponsored by Credit.com. Here at the ATB, we are all about budgeting in a way that works for you and finding realistic ways to feel more confident with your money. Now that 2020 is (finally) over, here are ways that you can start to take hold of your finances and build confidence with your money in 2021. Write down your short, medium and long term financial goals I’m a big believer that you don’t need to stress over how to maximize the value of every dollar you come across. Much of personal finance is behavioral and relies on us finding value in how we navigate our money! Because of this, I found it incredibly helpful to sit down and brainstorm short, medium and long-term financial goals to decide what I wanted my money to do for me. Write down your short, medium and long term financial goals Here’s how I break it up: Short-term goals – less than two years Medium-term goals – 2 – 10 years Long-term goals – 10+ years Feel free to dream big! We want to make realistic and attainable goals, but we also want to allow ourselves to dream about what we really want our lives to look like, and how our money plays a role in that. Get to know your credit score Wanna know a secret? I avoided my credit score for the longest time. Turns out, once I finally faced my credit score, I became more empowered to understand how my credit score affects my finances and what I could do to change it. While free resources can give you a ballpark estimate of your credit score, that score isn’t very useful and certainly isn’t what creditors see! Knowing your true score, and seeing your credit reports from all three major credit bureaus, gives you security and control over how to navigate your credit score going forward. While it can be daunting, credit plays an important role in our lives from renting, to car insurance, to mortgages, to career opportunities and more. That’s why it’s important that you stay informed of what your credit actually looks like that’s why I signed up for ExtraCredit’s free trial!  Start your ExtraCredit FREE trial here! Set up automatic savings Automating your savings is LIFE CHANGING. Setting up automatic savings is often referred to as “paying yourself first” because you are prioritizing saving money for Future You. There are tons of different savings goals that you can put this money toward, but the important part right now is to set up automatic savings so you can set it and forget it. Trust me—you miss that money a lot less if you never see it in your account in the first place. If you have automatic deposits at work, it’s super easy to add a savings account and have a certain % or dollar amount go into that account every month without it EVER hitting your checking. In my opinion, this is the best way to go. Out of sight, out of mind. You’re way less likely to touch this money, and you’ll be shocked at how much it grows over time! If this isn’t an option for you, you’re not out of luck. You can set up automatic savings transfers into your savings account from your checking account through your bank. Find a budget that works for you Here at the ATB, we are all about budgeting in a way that makes sense for you and your life. Budgeting doesn’t have to be stressful and restrictive. It should actually be freeing and allow you to feel more confident and in control of your money! There’s no one right way to budget, and there are TONS of different types of budgets depending on your income and financial goals. Personally, I use a zero-based budget which allows me to track and decide where every single dollar I have is going. If you have big savings goals, low income or high debt, I definitely recommend checking out a zero-based budget. Learn how to increase your credit score Your credit score has a bigger impact on your life than just determining your eligibility for loans. Credit can impact your ability to rent, job opportunities, car insurance rates and more. Once you know what your credit score is, it’s important to understand what makes up your credit score, and what steps you can take to increase it. There are five factors that influence your credit score: Payment History Amounts Owed Length of Credit History New Credit Credit Mix Payment History makes up 35% of your credit score, so it is the most important factor. ExtraCredit gives you the ability to report rent and utility payments, adding new tradelines to your credit profile. Adding payment history to your credit file.  And if you need help working to repair your credit, you can also use the Restore It feature to get an exclusive discount from a leading credit repair company. Remember: your best credit score is an accurate one. Understanding how to increase your credit can take a lot of stress out of your finances and help you feel more in control of your credit future.  Make a debt payoff plan I paid off $20k in CC debt in less than a year, and in order to do that, I needed a concrete plan of how I was going to tackle my debt. Prior to that point, I had just been throwing a little bit here and there, hoping that my balance would eventually decrease. Shockingly, that never happened. Once I decided to use the debt avalanche to tackle my credit card debt, I was able to calculate how much extra money I could throw at my debt every month in order to make progress toward my debt free goal. With this method, I paid the minimum payments on all of my debt except for the one with the highest interest. With the highest interest debt, I put any extra