There are a many different types of people that come to LSS for financial counseling. There are people that are working, paying all their bills, but getting nowhere on their debt. The balances are not going down. And the frustration is real. These people most likely have very little money in savings and know that one financial hiccup could push them over the edge. (raises hand sheepishly) A lot of the people tells themselves they are doing okay because the are paying all of their bills every month. BUT, remember, surviving is not thriving. And your credit score may be suffering.
Your credit score is based on five key categories:
- Payment History: (35% of your score) Paying your bills on time is huge. And very important.
- Amounts Currently Owed: (30% of your score) The amount of debt you owe creditors is a big factor as well. Try and keep your balances in relation to your credit limits as low as possible. Maxing out cards is trouble. Our average DMP client comes to us with $32,000 in credit card debt. By year three on a DMP their debt total is down to $17,000. That is HUGE!
- Length of Credit History: (15% of your score) The longer your have credit, the more points you will earn in this section. It’s a good idea to not close old, good accounts.
- Types of Credit: (10% of your score) Keep a healthy mix of accounts.
- Searches for New Credit: (10% of your score) Have too many inquiries for new credit is a red flag and will drop your score.
Take a peek at your credit report today by visiting www.annualcreditreport.com. This site is FREE and SAFE.
Does the description above sound like you? Give us a call today at 888.577.2227 or visit our website at www.ConquerYourDebt.org. We can help. A counselor can look at your whole financial picture including your income, expenses and debts. And then give you ideas for taking control and getting out of that financial rut.