Episode•August 15, 2023•12 min

Transform Your Credit Score With These Easy Steps | Ep. 254

Struggling with your credit score? Tiffany Grant, host of Money Talk with Tiff Podcast, shares easy-to-follow strategies on improving your credit. From understanding credit scoring models to getting free credit reports from the government mandated website, find out how you can increase your credit score and be on your way to financial success. Don't miss out on this invaluable advice - tune in now! Every Tuesday, Tiffany answers one of your submitted questions. To submit a question for an upcoming episode, visit here: https://www.moneytalkwitht.com/asktiffany Additional Links & Resources A Comprehensive Guide to Credit for Millennials and Gen Z How Much Does Your Credit Score Matter? Markia Brown: How to Improve Your Credit Score Fast Need to book a consultation? Click here! This podcast uses the following third-party services for analysis: Podcorn - https://podcorn.com/privacy OP3 - https://op3.dev/privacy

Apple Podcasts Spotify YouTube Overcast Amazon Music

Key Takeaways

1
You have hundreds of credit scores, not just one or two
Different lenders use different scoring models depending on the product (car loan vs. mortgage vs. credit card)
All scores are based on the same three credit reports: Equifax, TransUnion, and Experian
2
Pull your credit reports weekly for free at the only government-mandated site
AnnualCreditReport.com is the official site; other "free credit report" sites are for-profit companies
You can also request reports by phone (1-877-322-8228) or mail
3
FICO score is calculated from five weighted factors
Payment history: 35%
Amounts owed (credit utilization): 30%
Length of credit history: 15%
New credit inquiries: 10%
Credit mix: 10%
4
Lowering credit utilization is one of the fastest ways to boost your score
Pay down balances strategically
Request credit-limit increases when you can manage them responsibly
Aim to keep utilization below 20-25%
5
Regularly review and dispute errors on all three credit reports
Mistakes or fraudulent accounts can drag your score down
Call creditors first to verify debts before disputing; sometimes they no longer own the debt

Intro

In this solo "Tiffany's Take" episode, host Tiffany Grant answers a listener question about improving credit scores and breaks down the fundamentals of credit scoring and actionable steps listeners can take.
Tiffany Grant is the host of the Money Talk with Tiff Podcast and a financial coach focused on practical money education for everyday listeners.

– Understanding Credit & Why Scores Differ

Tiffany explains that credit is what lenders use to decide whether to lend money. Lenders pull different credit scoring models depending on the product, which is why one person can have hundreds of different scores.

Depending on the lender, you don't know what they're going to pull and what credit scoring model they're going to use.
– Tiffany Grant

– Your Three Credit Reports & How to Access Them

You have three credit reports (Equifax, TransUnion, Experian). Since COVID, you can pull them weekly for free at the only government-mandated site: AnnualCreditReport.com. Phone and mail options are also available.

Anything else, it's not the legit thing... The government site is annualcreditreport.com.
– Tiffany Grant

– FICO Scoring Model Breakdown

Tiffany walks through the five factors that make up a FICO score (300-850 range): payment history (35%), amounts owed (30%), length of history (15%), new credit (10%), and credit mix (10%). A "good" score is generally 670+.

– Actionable Strategies to Improve Your Score

Pay credit card balances strategically to lower utilization
Request higher credit limits (when responsible) to reduce utilization ratio
Become an authorized user on a responsible person's card (use with caution)
Only open accounts that report to the credit bureaus
Keep utilization low (ideally under 20-25%)
Review reports regularly and dispute errors

As you pay down what you already owe, your credit score will inevitably go up.
– Tiffany Grant

– Disputing Errors & Closing Thoughts

Tiffany shares a personal story of successfully removing an old debt by simply calling the creditor first. She encourages listeners to check the show notes for deeper resources and to submit their own questions for future episodes.

Resources

Topics

credit scoresFICO modelcredit utilizationcredit reportsdebt managementfinancial educationpersonal financecredit repairauthorized usercredit inquiries