Provident Living

Improving Your Credit & What to Do If You Have Fallen Behind

The best way to understand how to IMPROVE your credit is by first knowing how it works. There are 5 major factors which can help you break down the important parts of your credit score.

Payment History – 35%

Amounts Owed – 30%

Length of Credit History – 15%

New Credit – 10%

Types of Credit Used – 10%

As you can see Payment History makes up the largest amount of your credit score. So the FASTEST way to improve your credit is to pay your bills on time, every time. The 2^nd BEST WAY to improve your credit is to have a low debt-to-income ratio.

Here are some additional tips for keeping your credit score at its FINEST:

• Keep applications for new credit to a minimum

• Review your credit report at least once per year

• Dispute incorrect negative information with all three credit bureaus

• Correct all inaccurate information with all three credit bureaus

• Make sure all old accounts are closed at YOUR request

• Request that all missing positive information be included in your report

• Notify your creditors in writing with any change of address

• Fill out credit applications all the same

AnnualCreditReport.com is a centralized service for consumers to request FREE annual credit reports. It was created by the three nationwide consumer credit reporting agencies & it’s really the ONLY FREE WEBSITE (all the other so called FREE credit report services online are not really FREE).

Annual Credit Report       877-322-8228     www.annualcreditreport.com

Here are the three major credit reporting agencies in the United States:
Experian            888-397-3742       www.experian.com
Trans Union          800-916-8800       www.transunion.com
Equifax             800-685-1111        www.equifax.com

If you have fallen behind, or have a high debt-to-income ratio and want to improve your credit there is HOPE. You can ALWAYS rebuild your credit. It takes time and cannot be rushed. The first step is to find out what you can afford and develop a spending/action plan.

Successful family/individual finances begin with the payment of an honest tithe and the giving of a generous fast offering. The Lord has promised to open the windows of heaven and pour out great blessings upon those who pay tithes and offerings faithfully (Malachi 3:10 and Isaiah 58: 6–12).

When in financial difficulty you should always cover your BASIC NEEDS first which are food, water, utilities, shelter, & transportation. Develop an action/spending plan and keep track of all expenditures. Once needs are met work on increasing income to cover debt. Do not incur new debt to cover existing debt during this time. If you feel you need help the Bishop is a good source for advice & there are several resources in the community such as nonprofit (FREE) credit counseling agencies which can provide a step by step action plan, budgeting tips, financial education & resources (job, food, utility/rent assistance, shelter, etc). Please note if you seek out a free nonprofit credit counseling agency make sure they are accredited and provide FREE financial education. There is a HUGE difference between an accredited nonprofit credit counseling agency & a settlement company.

If you have any questions about accredited nonprofit counseling agencies or any further questions about credit please email Debs Aplanalp at debsaplanalp@gmail.com.

We LOVE YOU,

Sallee, Debs, Erin & Andrea