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2) Credit & Financial Identity
Utilization, payment history, age of credit
These are the levers you can pull to increase your score quickly. The 30% Rule (Utilization): If your limit is $1,000, never let your statement show a balance of more than $300. Keeping it under 10% is even better for a 'perfect' score. The 'Oldest Card' Rule: Never close your first credit card. The Age of Credit is based on your oldest account. If you close it, your 'age' drops, and your score will fall. The 'Payment' Rule: Always pay the Statement Balance in full. If you only pay the 'Minimum,' the bank charges you 20-30% interest.
These are the levers you can pull to increase your score quickly.
- The 30% Rule (Utilization): If your limit is $1,000, never let your statement show a balance of more than $300. Keeping it under 10% is even better for a "perfect" score.
- The "Oldest Card" Rule: Never close your first credit card. The Age of Credit is based on your oldest account. If you close it, your "age" drops, and your score will fall.
- The "Payment" Rule: Always pay the Statement Balance in full. If you only pay the "Minimum," the bank charges you 20-30% interest, and you will fall into a debt trap.
Free Resource: How to Use Credit Cards Wisely | The 6 Golden Rules
Resources
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