Playing the Credit Score Game

The truth is winning the credit score game matters! It not only affects getting any type of loan or credit card as well as the interest you will pay, but it can affect being approved for a rental property, setting up new utilities, the price of insurance premiums or even getting hired for a new job.

For some of us, our journey with credit may have started at a young age. Perhaps you were taught to pay off debt each month and use it as a tool rather than having the illusion that credit card debt is “free money” with no idea how to really use it to your advantage.

For many of us, credit can be a hinderance or cause unwanted debt and credit score complications. This is why it is important to understand how to best play the credit game. Thinking about money as a game can make it more fun while we play and learn strategies along the way. Winning the credit score game is not hard, but it takes time as you learn to understand how the system works. The quicker we understand how this game is played; we can use our strategies to win a top score.

Payment history, amounts owed, length of credit history, credit mix and credit inquiries determine the number. Pay all bills on time and do not close old credit cards because history is a factor in winning this game. The oldest credit line establishes the starting point.

• Here are a few simple strategies: 

• Pay off credit card debt in full each billing cycle and your credit score will increase. 

• Pay the balance due after the statement date but before the due date for the best increase. 

• Do not carry a balance. 

• Stay below 30% of the usage of each credit card used, or your score will drop. 

• Paying off a loan will decrease your score by a few points but your responsible habits will bring it back up quickly as you continue to play this game that we have a lifetime to master. 

• You should check your score weekly or monthly to track your progress, the score ranges from 300-850. Being in the mid to high 600’s is considered good credit. A score in the 700 or 800’s is considered excellent. And reaching the mythical 900 score is possible with time and understanding.

Download the Credit Karma or Credit Sesame app and begin paying attention to your financial data. Track this score on your path to financial wellness and watch it increase! Make this part of your financial meeting with yourself.

Being good with money has little to do with how smart you are and everything to do with behavior. Behavior is hard to teach, even to really smart people.

We use money for better or for worse based on our view of how we think the world works and our reality simply shapes our habits.

The goal is to be debt free and that is still the focus as we play this game so that we can stack our cash like the asset it is and gain our freedom to live life as effortlessly as we please.