Posts by jsangl

"How do I build my credit?"

This is one of the most common questions I am asked.  In this series, I will be sharing various ways that one can build credit while still winning with money.

Part Three – Pay All Bills On Time – Consider Automatic Bill-Pay

If you do not pay your bills on time, the late payments will be reported to the credit reporting agencies.

This means that you need to pay your utility, cell phone, and other monthly bills on time.  This is why I am such a huge fan of a written monthly spending plan (budget).  When you have a plan, the chances of paying a bill late are greatly reduced.

If you live an exceptionally busy life or are notorious for procrastination, consider automating bill payments.  This will ensure that bills are paid on time, and can greatly reduce stress and the potential for your credit score to be dinged.

Read the entire series

I am FIRED UP because none other than the famous Tony Morgan just came over to my office and handed me a copy of his new book, "Killing Cockroaches"!

Here are five reasons I am PUMPED about this book:

• Tony's blog [you should subscribe to it] is one of very few blogs that I read every single day.
• Tony is smart.  Crazy smart.
• Tony likes technology and provides great reviews (with examples of practical application).
• Tony is a great leader.  I don't have to work for him to know it.  All I have to do is observe his team and see the quality of their work and their interactions with each other.  As a matter of fact, Tony's team has had a direct part in the development of every print piece produced for I Was Broke. Now I'm Not.
• An cartoon intro to the book has been produced, and it made me want to obtain the book immediately!  You should take a couple of minutes and watch it right now and then go purchase Killing Cockroaches.

I am off to start reading!  Look for a review within the next week! 

"How do I build my credit?"

This is one of the most common questions I am asked.  In this series, I will be sharing various ways that one can build credit while still winning with money.

Part Two – Swipe Purchase And Immediately Pay Off

A great way to boost one's credit score is to obtain a department store credit card.  Here is how it works.

1. Ensure that a small purchase from that store (something you truly need) is included in your monthly budget.
2. Pull the money planned for that purchase out in cash and head to the store.
3. Purchase the item with the department store credit card.
4. Immediately after being given the receipt, tell the cashier that you want to make a payment on your credit account and give them the cash for the purchase to bring your credit account balance to EXACTLY ZERO.
5. Do this once each month.

Your credit score will soar as the length of the credit relationship increases and as the balance remains at zero.  It might be helpful to go back to Part One to see what comprises of your credit score.

NOTE:  If you do not trust yourself with a credit card and controlling your spending using a written monthly spending plan, then DO NOT use this method!

Read the entire series 

"How do I build my credit?"

This is one of the most common questions I am asked.  In this series, I will be sharing various ways that one can build credit while still winning with money.

Part One – What Determines My Credit Score?

It is important to first understand how one's credit score is calculated.  There are some key characteristics that are used by credit monitoring companies (Experian, Equifax, and TransUnion) to determine your credit score.

• Type of Credit  There are two key types of credit.  Installment (car payment, house payment) or Revolving (credit card, line of credit)
• Total Available Credit  This is the total of all credit limits.
• Total Credit Utilized  This is the total of all current debt.
• Length of Credit Relationship  The longer the credit relationship, the better.
• Payment Timeliness  Obviously, payments need to be paid on time to achieve the highest scores!
• Requests For Credit Made For Potential Purchases
• Public Records  Bankruptcies and judgments are not helpful to one's credit score!

You can check out some of the related articles/links below to learn more about credit scores.

Related Articles/Links

• Experian's "What's In A Credit Score?"
• TransUnion's "Credit Scoring 101"
• Equifax's "Keeping Score On Your Credit Score"