WEEK 2: CREDIT IMPROVEMENT

New to the Live Richer Challenge: Credit Edition? Learn more about it HERE.

Need to catch up? Click on yesterday's task and then come back.


Day 12: 100 points

Today’s Easy Financial Task: Learn how to make your score Jump Like Jordan.

How to rock this task:

  1. Watch the video
  2. Use the tips from the video to raise your credit score

Day 12 Dream Catcher! Today is possibly my favorite day of this Challenge.

Today, I’m going to show you one of my favorite tactics that (in combination with the other tactics we’ve discussed so far) can make your credit score Jump Like Jordan...In fact, adding this strategy to your tool belt can raise your credit score as much as 100 points in a year.

Yup, you read that right. 100 points in a year, Dream Catcher!

Watch the video below to find out how to make this task work for you:


Here’s the video recap plus an extra tip:

Auto-paying off a small debt to zero each month can do wonders for your credit score!

Here’s how to do it:

1) Take out a credit card with a $0 balance: If you don’t already have a credit card with a $0 balance, you can apply for a new card. Apply for a secured card if you can’t qualify for a regular one. You can use the steps from Day 11’s task to find a secured card.

Keep in mind if you apply for a card it will cause an inquiry on your report. The inquiry can stay on your report for up to two years. The long-term advantages of using this method will likely outweigh the disadvantage of losing a few points for a short time.

2) Place a small bill on the credit card: Take your new card (or existing card with a $0 balance) and put one small recurring bill on it like a streaming service or your phone bill. This should be the absolute only thing that you charge on the card.

3) Become an authorized user: Ask a close, trusted family member to add you on as an authorized user of one of their credit cards in good standing. You'll be able to inherit their good behavior with the card.

4) Set up an automatic bill payment: Go to your bank and set up an automatic payment from your bills account that will pay off the credit card balance each month. This will create a pay off loop that you can set and forget.

For this tactic to work, you must avoid swiping your card on anything else or revolving a balance. Make sure to leave this card at home to avoid temptation.

That’s it for Day 12!

This week we covered a ton of information on how to improve your credit score. Use the next two days to review anything that you missed!

Leave a comment below or reach out to your accountability partner(s) if you have any questions.

Share what you’ve learned today with your social media friends:

Woot! Woot! Today I learned how to increase my credit score. Day 12: #Liverichercredit


Live richer,

Tiffany


P.S. Don’t forget to get your free Live Richer Challenge: Credit Edition Starter Kit. Get it here.

P.P.S. Here’s a copy of the Challenge Calendar. It’s a fun way to keep track of your progress.

You can also reach out to me here:


My Lisa Rule: I have 4 sisters and Lisa is the baby (well she’s not a baby anymore). Of all of my sisters, I’m the most protective over her. Before I share any product or service with you, it must pass my Lisa Rule.

What’s the Lisa Rule? If I would not advise Lisa to use a product or service, I won’t advise you to either. YOU are my Lisa's. I feel protective over you and your financial journey.

The products and services I recommend pass my Lisa Rule. Yes, I may be an affiliate or partner and earn a commission off of referrals or income, but I would not recommend a product or service that I didn’t believe was helpful and useful.


Share the wealth!


  • Good morning everyone. I learned that you can boost your score by using a zero balance credit to pay a small recurring subscription/payment somewhere. My question is What if you don’t have a small subscription etc.. What can you use instead?

  • HI BUDGETNISTA, I’M BILAL. OK, SO IF I HAVE AN EXISTING CREADIT CARD FOR EXAMPLE JC PENNY CARD, & I PAID OFF, THE CARD HAS A 0 BALANCE. IN ORDER TO PREVENT MY CREDIT SCORE FROM GOING DOWN, IS IT BEST USE THE CARD & OF PAY ON IT EACH MONTH SO I CAN MANTAIN A CREDIT SCORE OF 750? THANK YOU!

    TO OUR SUCCESS,
    BILAL

  • Will this method work when your due date is before your statement date? There is about 7-10 days between my due dates and my statement dates. This is true for all of my cards.

  • I will be trying the tip but first I have to finish paying off one of my credit cards to a $0 balance.
    #Today I learned how to increase my credit score.

  • Previous lessons had been refreshers. This lesson was new to me. I wish I had known when I had my financial hardships in 2006 due to layoff and over extended.

  • I’m going to do this with a couple of cards. But question.. will it work with a gas card? I have an Exxon card that we can use for gas but I don’t know if it carries as much weight as our Amex or Mastercard.

  • Jumping like Jordan!!!
    This is really a change maker as my credit score need a boost.
    Looking forward to seeing the leap.

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