The Managing Partner of 369 Financial LLC (Registered Investment Adviser Firm), Andrew Saltman, is a Finance graduate from the University of Tampa. He has expertise in finance, real estate, and mortgage. 

As an Investment Coach from Florida, Saltman is committed to making you stand out as a financially independent individual. He has put together a personalized plan to improve your credit score so that you can achieve any short and long-term financial goals. In addition, he formulates simple and appropriate questions so that people find the answer and solutions for themselves.

As an investment advisor, Saltman has consistently helped his clients by restructuring their credit scores to achieve the set objective in case the goals stipulated could not be achievable in the time agreed. Below he shares some valuable tips gained from his experience in improving a credit score.

When asked what is a credit score and how to increase it? Saltman replied: Pay your debts quickly, thanks to the snowball method.

Why is minimum payment considered a trap? What are the main disadvantages of going to a pawn shop? How do you recognize good debts versus bad debts?

The credit score, also called the risk score, is the credit risk score you have and is validated based on your payment behavior. For an investment company, the higher your score, the lower the risk they run when lending you money or offering you credit. Consequently, you will get better financial offers.

How is the credit score measured?

Saltman outlines that the credit score measured depends on the measurement entity. For example, the risk score at Equifax is calculated from 1 to 999, where the former indicates low risk and the latter high risk. On other platforms, the score is measured from 200 to 700.

Why is this measure of our credit history important? How it’s used? 

To this, Saltman highlights some helpful tips for improving your credit score. Read below:

A credit score vastly determines a person’s creditworthiness. First, it’s essential to understand how a credit score is put together. In general, a credit score is broken down as follows:

• 35% is your payment history. Do you pay your bills on time?
• 30% are amounts you owe (loans, credit cards, etc.). The money you owe on different credit accounts isn’t necessarily bad, especially if you pay your bills on time every month. Whether you’re using your entire line of credit and how much of any installment loans (like a car loan) you still owe.
• 15% is the length of your credit history. Having a long credit history is good, but you can still have a high score even if you’re young and have a little credit history (like having credit cards and a new car loan). 
• 10% is your combination of credits. What is your credit mix, i.e., credit cards, retail store accounts, installment loans, home loans, etc.? A good credit mix, especially with a history of paying on time, helps improve your credit score.
• 10% is any new credit. If you have opened numerous credit accounts in a short period, this can hurt your credit score. Although closing a credit account still appears on your credit history, it has no impact on your score.

Saltman shares incredible secrets on how to repair and improve a credit score

“You have power over your credit score, and there are things you can do to improve it over time,” says Andrew Saltman.

• Check your credit report – The first thing you should do is get a copy of your credit report free from errors. 
• Get Organized – No more late payments on your credit cards. 
• Pay your debts: Although this is not an easy task, it will make a difference. Use your credit report to list all your credit cards and the balances you owe. Pick the credit cards with the highest interest rates, and hit those balances first. Most importantly, don’t add to your debt by continuing to use your credit cards. 

Why does it matter to know a credit score?

Thanks to this, you will be able to improve your credit profile to be a candidate for better financial opportunities. In the same way, having a good score will make you avoid accepting more expensive loans or credits, not only with banks but also with service providers. The higher your score, the easier it will be when applying for and when approving new loans or lines of credit.

Saltman’s advice: A higher credit score can also open the door to lower interest rates when you borrow. It requires a bit of effort and, of course, some time.

Check your credit reports.

Obtain a copy of your credit report from credit bureaus in Florida. You can obtain this information for free on the official websites of these credit rating agencies. After you know, review each report to see what is helping or hurting your score.

The multiple factors that help your credit score increase are the history of paying on time, low balances on your credit cards, different credit cards and loan accounts, older credit accounts, and a few new credit inquiries. On the other hand, late payments, high credit card balances, collections, and judgments are the biggest detractors of your credit score. 

That’s why Saltman stresses reviewing your credit report for errors that could affect your score.

Control bill payments

Saltman tells how a vast majority of lenders will use your credit score to determine your risk and the following factors decide it:

• Payment history
• Use of credit
• Age of credit accounts
• New credit inquiries

One factor that has more weight in calculating the credit score is the history of payments for the above. It is better than the canceled debts, or the student loans of the past, that remain on your record. 

If you pay your debts at the helm, this works in your favor. Therefore, an easy way to improve your credit score is to avoid late payments. Saltman recommends:

• Create a filing system, either paper or digital, to keep track of monthly bills.
• Set up due date alerts. 
• Automate bill payments from your bank account.

Limit your new credit applications and inquiries

Saltman shares an example of when a bank wants to know your credit score to give you a new credit card, start a home loan, a car loan, or some other form of new credit. An occasional investigation is unlikely to have much of an effect. But too many inquiries in a short period can hurt your credit score. 

Let’s talk about the clean slate.

The clean slate law is a measure whose purpose is to eliminate the negative records of people reported to credit bureaus for failing to meet their financial obligations. If you are looking for a second chance regarding your credit rating, these are some essential points that you should take into account:

• Whoever pays their debt in the next 12 months from the law’s enactment will no longer have an unfavorable report.
• If your obligation is less than two years, the rating is removed twice the time of the default. 
• If you paid your debt more than six months before the law’s enactment, the negative report is eradicated immediately.

Finally, Saltman puts out the most valuable tip: Avoid opening multiple new accounts. 

Yes, Saltman warns you on this. If you apply for many different credit cards and loans simultaneously, you could see a drop in your credit score. 

Nevertheless, as an investment advisor, he offers a quick solution: “It’s wise to take some time to research the best options for you and your needs before you apply for credit cards and loans.”, concludes Saltman. 

Saltman accompanies his clients to diagnose their problems, learn about their current situation, perfect their skills, and find solutions. The client knows from the guide as he lays a flashlight in the blind areas or accompanies along the way by mirroring.