At a recent Boss Up event in Indy, the legendary Freeway Rick Ross shared powerful insights on leveraging credit that truly shifted my perspective. When I mentioned, "I'm a risk taker," he replied, "Credit doesn’t work like that." We quickly analyzed my credit profile, and by the end of the weekend, my understanding of credit had evolved significantly.
The opportunities before me have expanded tremendously because I prioritize gathering expertise and actively listening. Boss Up is an invaluable platform for networking and asking pointed questions that directly relate to your field. In this article, I will outline the basics of credit that I can share with you.
Join us to meet financial consultants who can guide you in making savvy money moves. The knowledge we've gained about investment, security, and liability has been transformative, with great projections and I’m excited to pass it on to you will embrace it. Here is the boss basics to credit. Please share.
1. **Credit Score: Minimum of 680 (700-720 is excellent)**
A score of 680 is the baseline for approval, while 700-720 indicates low risk, improving chances for better terms.
2. **Number of Accounts: 6-10 (10 is optimal)**
Having 6 to 10 open accounts shows experience with credit management. Ten accounts demonstrate well-rounded financial responsibility.
3. **Credit Cards: At least 2 from major banks**
Two credit cards from major banks (e.g., Chase, Citi) enhance credibility and signal financial stability to lenders.
4. **Credit Utilization: Keep usage under 20%**
Using less than 20% of your available credit indicates responsible management and lowers perceived risk.
5. **Credit Inquiries: Fewer than 3**
Limiting hard inquiries to under 3 in a short period protects your credit score and suggests you're not overly seeking credit.
6. **Payment History: No late payments in the past 24 months**
A clean payment history demonstrates reliability; lenders prefer borrowers with no late payments in the last two years.
7. **No Derogatory Marks**
Avoid bankruptcies, charge-offs, or collections to maintain a healthy credit profile. These marks significantly impact approval chances.
