New to the Live Richer Challenge: Credit Edition? Learn more about it HERE.
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Day 6: Review, Reflect, Relax
Day 7: Weekly Inspiration
Day 8: Credit Report Clean Up
Day 9: Bills on Lock
Day 10: Amounts Owed
Day 11: Length of Credit History
Week 2: Credit Improvement
Day 12: 100 points
Today’s Easy Financial Task: Learn how to make your score jump like Jordan.
How to rock this task:
- Watch the video
- Use the tips from the video to raise your credit score
Day 12 Dream Catcher! Today is possibly my favorite day of this Challenge.
Today, I’m going to show you one of my favorite tactics that (in combination with the other tactics we’ve discussed so far) can make your credit score jump like Jordan. In fact, adding this strategy to your tool belt can raise your credit score as much as 100 points in a year.
Yup, you read that right. 100 points in a year, Dream Catcher!
Watch the video below to find out how to make this task work for you:
Here’s the video recap plus an extra tip:
Auto-paying off a small debt to zero each month can do wonders for your credit score.
Here’s how to do it:
1) Take out a credit card with a $0 balance. If you don’t already have a credit card with a $0 balance, you can apply for a new card. Apply for a secured card if you can’t qualify for a regular one. You can use the steps from Day 11’s task to find a secured card.
Keep in mind if you apply for a card it will cause an inquiry on your report. The inquiry can stay on your report for up to two years. The long-term advantages of using this method will likely outweigh the disadvantage of losing a few points for a short time.
2) Place a small bill on the credit card. Take your new card (or existing card with a $0 balance) and put one small recurring bill on it like a streaming service or your phone bill. This should be the absolute only thing that you charge on the card.
3) Become an authorized user: Ask a close, trusted family member to add you on as an authorized user of one of their credit cards in good standing. You'll be able to inherit their good behavior with the card.
4) Set up an automatic bill payment. Go to your bank and set up an automatic payment from your bills account that will pay off the credit card balance each month. This will create a pay off loop that you can set and forget.
For this tactic to work, you must avoid swiping your card on anything else or revolving a balance. Make sure to leave this card at home to avoid temptation.
That’s it for Day 12!
This week we covered a ton of information on how to improve your credit score. Use the next two days to review anything that you missed!
Leave a comment below or reach out to your accountability partner(s) if you have any questions.
Share what you’ve learned today with your tweeps:
You can reach out to me here:
Facebook: The Budgetnista
Private Forum: Dream Catchers : LIVE RICHER
P.S. Don’t forget to get your free Live Richer Challenge: Credit Edition Starter Kit. Get it HERE.
P.P.S. Here’s a copy of the Challenge Calendar. It’s a fun way to keep track of your progress.
*** Need Help? Feeling Overwhelmed? Want to work with someone one-on-one to improve your credit? Netiva "The Frugal CrediTnista" is offering her renowned, full credit improvement services & consultations at a special discounted price just for Dream Catchers! And there's also a FREE Live Richer Credit Repair Toolkit with your name on it! Learn more and get the help you need, HERE. ***
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What’s the Lisa Rule? If I would not advise Lisa to use a product or service, I won’t advise you to either. YOU are my Lisa. I feel protective over you and your financial journey.
The products and services I recommend pass my Lisa Rule. Yes, I may be an affiliate and earn a commission off of referrals, but I would not recommend a product or service that I didn’t believe was helpful and useful.