Be a FICO High Achiever

I am a FICO high achiever! This title is new to me. Though I regularly monitor my credit history and scores, in my most recent self-check of my credit, I found this new status that I have earned – yes, earned! It has taken me over 26 years to earn this.

This is not enough for me. Two credit bureaus told me how I could improve my score. While there are plenty of ways to do this, I will focus on two. TransUnion told me “You have too many credit accounts with balances.” They also said, “FICO High Achievers have an average of 3 credit accounts carrying a balance.” So I found a balance I could pay off and I paid it. Next time I check my credit score, I will see how much of a difference this made. In the meantime, I will continue to focus on earning, reducing debt and paying off accounts.

Equifax told me “You recently opened a new credit account.” They said, “FICO High Achievers opened their most recent account 27 months ago, on average. I opened a new account 8 months ago forgetting the impact it would have on my credit score. I was opening a new bank account and the banker offered me another credit card. I thought about declining, and then I caved. My credit score would be higher if I declined. Hopefully, I will keep this in mind in future.

My everyday financial habits and financial decisions influence my credit score. And your everyday financial habits and financial decisions influence your credit score.

FICO stands for Fair Isaac & Company …the company who pioneered this mathematical calculation. Banks and lenders use FICO to determine one’s credit score and dependability. Your FICO score can influence the amount a bank might lend you and the interest rate they might offer.

Earned run (Baseball)

An earned run is a run that is made without the assistance of errors on the opposing side.

Budget

The bottom line: Income must exceed expense over the long term in order to improve one's economic position.

How to get there: Be consistent - it will always help.
Budget expense first. What are your current spending commitments?
Next, budget to repay debt. These are spending commitments you have made in the past.
Last, budget to save for future spending plans and unexpected needs.