How to Restore Your Credit Back to Excellent
Is anyone else besides me confused and frankly tired of all this talk about credit in the news? Truthfully, I have lost hope that anyone with responsibility actually knows what they are talking about. However, it is important to understand how credit works because it can severely affect your day to day (or month to month) life.
It is scary to believe how much impact this intangible concept will have on your life. It could stop you from being able to turn on your utilities or even have a place to live at all. So, whether we like it or not we have to adapt to having our financial futures partly determined by our credit. The good news is we do have control over our credit score.
In order to create a credit restoration plan for yourself there are two things you must do. First, you much learn about what exactly goes into the computation of your credit score. Then, you can make an action plan tied to those specific things that are directly related to your credit score.
You may be surprised to find out how your credit score in calculated. For example, your income is not part of the equation at all. The best part of your credit score is that it is calculated with a mathematical algorithm – which can be solved!
So is there a way to “beat the system?” Absolutely! This has nothing to do with cheating or manipulating. But a clear understanding of how your credit score is calculated will help you put forth efficient efforts to finding debt relief.
First of all, there is a difference in a credit score and a credit report. Everyone is entitled to a free credit report every year, but not their credit score.
The great thing is that there are 5 simple and controllable factors that go into giving you a credit score. Income is not even one of them! Some of the richest people in the world have the worst credit and some of the poorest may have the best.
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