A person’s credit report is one of the most important tools consumers can use to maintain their financial security and credit rating, but for so long many did not know how to obtain one, or what to do with the information it provided.
Ruben Hinojosa

It’s easy to do. To ‘put one’s head in the sand,’ to ignore things that are challenging and conversations that might be difficult. But, when it comes to our finances, women need to know where we stand – right?! We HAVE to look out for ourselves, especially in an area as important as finances.

That’s why we love our Girlfriend Guru MIATA EDOGA. She shares GREAT information and insights into how to plan and protect ourselves financially. She’s an ‘invaluable’ resource for women and we thank her for this helpful information on Understanding our Credit Scores:

Sometimes I feel like I’m just a number. Standing at the deli counter yesterday I had to take a number…even though nobody else was in line. The woman stared at me until I did, then she said, “32?” and smiled.

I wish I was kidding.

One number rules them all though: your credit score. Whenever you want a loan, credit card, and now even a job, your credit score might make or break your plans.

People with good credit receive better treatment.

The popular FICO score ranges from 300 – 850. Generally speaking, here’s how credit scores rank:

760 – above Excellent credit

730 – 760 Great Credit

710 – 730 Good Credit

600 – 710 Average Credit

480 – 600 Bad Credit

Below 480 Poor Credit

How to Improve Your Credit Score

Your credit score is a mix of several factors, but a few will help you raise your number more quickly and dramatically.

1) Pay bills on time – According to MyFico.com, the home of the FICO credit score, 35% of your score is paying bills on time.

Action step: Set up automatic payments and reminders so you don’t miss any scheduled bills.

2) Increase your free credit - 30% of your score is the amount of open credit you have available. By paying down debt and increasing your credit lines, you’ll raise your score.

Action step: Attack high interest rate debts first, then move to lower interest rate cards and loans.

What I worry about: Don’t increase your open credit until you have a good handle on your current problem. You could easily make your situation worse by applying for more credit and using it.

3) Check your credit report

According to ABC news, more than 90% of credit reports have a mistake in them! Dig through your report for inaccuracies and work with the lender and credit agency to have these removed.

Action step: Check your report for free at many sites, but I like the one sponsored by the Federal Trade Commission: AnnualCreditReport.com. You won’t receive your FICO score for free, but can score a reasonable estimate (called a FACO score) at CreditKarma or Quizzle.

MIATA EDOGA is the President and Founder of Abundance Bound, a 10-year old company committed to utilizing humor, inspiration, and lots of love to give individuals around the world the necessary tools to thrive financially, while keeping focus on the things they treasure most. Visit the Abundance Bound Facebook Page for your free copy of Financial Success for the Creative Soul!

Do you know your Credit Score? What Girlfriend needs to take control of her finances? (Share this with her too!)

Thanks Miata and thanks for being one of our Girlfriend Gurus!

By the way, we LOVE guest blogs here at Girlfriendology. Have a great girlfriend story to tell? Want to celebrate your fabulous female friends? SHARE! (And, we also have Girlfriend Gurus – check that out to be featured on Girlfriendology!)

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