Working on boosting your credit score? Aren’t we all? There are many, many factors that contribute to your credit. So many in fact, that no one person really knows exactly how those scores are calculated.

As there are many different factors to consider, I have decided to spread this particular topic of BOOSTING YOUR CREDIT SCORE in our Financially Savvy series out through multiple posts. Follow along, and implement some simple steps and watch those numbers grow!

Before we get started I have to tell you that I am not a financial adviser, I did not get a degree in personal finance, and you should not take everything written here – this series or anything online – as irrefutable fact. You are, of course, responsible for your own credit score, your own bills, debt, credit cards and all other finances in your name.

That being said, my husband and I have worked very hard in this aspect of our lives, with wonderful results.

Boosting Your Credit Score – Understanding Credit

Let’s face it… you can’t BUY anything using loans/credit unless you already have credit. The goal here is to USE your credit, not ABUSE it, and you need to know the parameters before you get started. This knowledge is optimal for youngsters just starting out, just starting college or starting a family and career etc.

**If you have amassed a considerable debt already, you’ll want to head over to the Debt Reduction Post in our Financially Savvy Series and read that before moving on to the rest of this series.**

You’ll need a good credit score when purchasing a home or a car, or getting a credit card without an astronomical interest rate. Many times a young adult just starting out will either need a pre-paid (secured) credit card (it stinks using your own money up front but this truly can be the fastest way to establish credit on your own), or to be added to the account of an existing and in good standing account of a parent, sibling, grandparent etc.

My personal advice if you are the older (ie: credit established) adult in this equation is to add the younger person (your child, sibling etc) to one of your credit card accounts without handing them an actual card. The fact that they are on the account itself will help them establish credit, without you giving them full reign of said credit card.

Note: they could access those funds as they are on the account, this is where some serious trust comes into play. Maybe don’t even tell them they’re on it?!

So, what is a GOOD credit score rating??

Credit scores range from 300 to 850. Generally speaking, anything around a 700 score is considered GOOD, while the 600s is considered FAIR and anything around or under 600 is considered poor.

While you should continuously strive to improve or maintain your credit score, don’t kill yourself trying to achieve that goal either. While Paul and I are both in the top bracket, we also know that it is impossible to achieve the “perfect” credit score of 850. And, it is not necessary to have perfect credit to get phenomenal interest rates on your car loan or home loan.

This is not a race, we are in it for the long haul. We will work on this together and if you have any specific questions before opening or closing a credit card, buying a car or a home, you can always shoot me an email and I will give you my best advice.

Keep paying your bills on time, and work on paying off those higher credit card balances if you have them!