Improving Your Credit

According to the 2019 Experian Consumer Credit Review, the average American carries $6,194 in credit card debt. So it’s no surprise that my most streamed episode of the networthy podcast talks about building better credit.

As we discussed on the show, the first step to improving your credit is getting a good grasp on where you currently stand. Before setting credit goals, it is important to know what your current credit score is.

Discover offers free FICO score monitoring and tracking, even if you do not open a credit card with them. 90% of top lenders use your FICO score to get a understanding of your financial standing & predict how much risk they would be taking on by approving you as a borrower.

Capital One provides free credit report monitoring through their CreditWise app. CreditWise uses the VantageScore model to determine your score and your score here may vary from your FICO score but it is still a beneficial way to measure your credit health. CreditWise also provides a simulator which allows you to predict how your score may fluctuate after making financial decisions. Let’s say you have to decide between paying off a credit card balance or transferring the balance to a new card, the CreditWise simulator can be used to predict the affects either decision could have on your score.

On episode 6 of thenetworthy we discuss how credit monitoring can be used on your credit improvement journey.