RECENT POSTS
  • Credit Scores

    Make Sense of Your Free Credit Scores

    Is your shirt size medium or large? How about your dress size? Or your shoe size? Very often, your size depends on what store you’re shopping in. Believe it or not, the same goes for your credit scores. They’re different depending on where you get them from. I’ll show you how to make sense of your free credit scores, how they’re calculated, and which ones are more meaningful than others. What is a Credit Score? Your credit score is a 3 digit number that represents your creditworthiness to lenders. The higher the number, the more creditworthy you are. This score is derived from all of the data that’s in your…

  • Basics,  Credit Cards,  Credit Scores

    Before You Cancel That Credit Card, Read This!

    One question that I am asked frequently is: “Will it help or hurt my credit score if I cancel a credit card?” I can say with certainty that the singular act of cancelling a card will never help your score. And, depending on your credit profile, the negative impact could range from negligible to significant. In my article “Decoding Credit Score Mystery Math“, I explained the factors that make up your score. The three largest factors are: Payment History (35%), Credit Utilization (30%), and Average Age of Accounts (15%). Let’s have a look at how canceling a credit card impacts these factors. Payment History Some readers may feel that closing a credit card where they have…

  • Basics,  Credit Scores

    10 Strategies to Increase Your Credit Score in 2016

    Do you have big travel plans next year and want to apply for credit cards that offer rewards to help you get there for free? Or is 2016 the year you plan to become a homeowner? Then now is the time to spruce up your credit score. Here are 10 strategies you can use to get instant approvals on those rewards cards or the lowest possible rate on your mortgage. Check for Errors on Your Credit Report The first step to a better credit score is knowing what’s in your credit report. There are three companies that report on your credit: Equifax, Experian, and Transunion. Visit annualcreditreport.com for more information on obtaining…

  • Basics,  Credit Scores

    7 Keys to Higher Credit Scores

    It’s always a good time of year to review some basic steps to achieving higher credit scores. Here are 7 keys to getting instant approvals on those rewards credit cards or the lowest possible rate on your mortgage. Be Disciplined As is the case with most personal finance strategies, being disciplined is the key. The good news: thanks to the advent of technology, it’s much easier now than in the past to be disciplined in building your credit. If you fully commit yourself to the process of boosting your credit rating, higher scores–and the multitude of benefits and special offers that come with them–can be yours. Auto Pay Is Your Friend The…

  • Basics,  Credit Scores

    Understanding your Credit Score–TIMES THREE!

    When most people start on the journey to understand their credit score, they’re usually expecting to have just one number to deal with. You might be surprised to learn that you don’t have just one FICO Score, you have THREE! And they’re all different! While that seems unnecessarily confusing, and perhaps a bit daunting, here’s the good news—the same strategy can be used to boost all three scores, all at the same time. In this post, I’ll briefly explain why you have 3 credit scores, and why they’re all different, so that you can have a better understanding of my next post, which will give you the tools you’ll need…

  • Basics,  Credit Scores

    Decoding Credit Score “Mystery Math”

    Knowing what doesn’t affect your credit score is every bit as important as knowing what does. Deciphering the methodology used by the “credit score gods” can be intimidating, so PointsYak has done the work for you, breaking down the parts of your credit report that are used compute your score. Of course, only the folks at FICO know the exact math behind that final magical number, but here’s the bottom line on what hurts your score, what helps, and even a few things that—surprisingly—have no impact at all. Payment History How you’ve handled your monthly bills accounts for the largest portion of your overall credit score. Are you one of…

  • Basics,  Credit Scores

    The Real Value of Good Credit

    We’ve all seen the television commercials about the importance of knowing one’s credit score. But how much is good credit actually worth?  The answer may surprise you. A low credit score is symptomatic of poor financial habits–habits that can cost you BIG TIME, in addition to any exorbitant interest you may be paying on your monthly credit card bills. How much more could it cost? Let’s say you’re buying a $200,000 house with a 20% down payment. On a 30 year $160,000 mortgage, having a credit score of 650 instead of 750 can cost you nearly $35,000  in additional interest payments over the life of the loan. Check your Credit Report for free The first step to…