Category: Credit Score

What Is My Credit Score and How Can I Improve It

Posted on April 12, 2025 by - Credit Score

What Is My Credit Score? The Basics Explained

Your credit score is a three-digit number, typically between 300 and 850, that summarizes your creditworthiness. Think of it as a snapshot of your financial habits: Do you pay bills on time? How much debt do you carry? Have you applied for five credit cards this month? All of this information is fed into a formula that calculates your credit score. Lenders use this score to decide whether to approve you for loans, credit cards, or even rental agreements—and at what interest rate.

Scores are calculated using data from your credit reports, which are maintained by three major credit bureaus: Equifax, Experian, and TransUnion. These reports track your borrowing history, including credit cards, mortgages, and student loans. The most common scoring models are FICO® and VantageScore®, both of which weigh factors like payment history and credit utilization.

Here’s how the ranges generally stack up:

  • Excellent (720+): You’re a lender’s dream. Low-risk borrowers get the best rates.
  • Good (670–720): You’ll qualify for most loans, but might not snag the lowest rates.
  • Fair (580–669): Approval isn’t guaranteed, and interest rates will be higher.
  • Poor (300–579): Rebuilding is key—you’ll face limited options and high costs.

Keep in mind: You don’t have just one credit score. It can vary slightly depending on which bureau or scoring model is used.

Evergreen Financial Counseling enrolls all of its debtor-education clients into 7 Steps to a 720 Credit Score for free. This simple credit-education course will help you rebuild your score to 720 in just 12 to 24 months. 

How Is My Credit Score Calculated? The Recipe Behind the Number

How Is My Credit Score Calculated? The Recipe Behind the Number

Your credit score isn’t plucked out of thin air—it’s based on specific ingredients from your financial history. Here’s how the “recipe” breaks down for FICO® scores (the most widely used model):

  1. Payment History (35%): The biggest slice of the pie. Lenders want proof you pay bills on time. Even one late payment can dent your score.
  2. Credit Utilization (30%): This measures how much of your available credit you’re using. Aim to keep balances below 30% of your limit. (Example: If your credit card limit is $10,000, try to owe less than $3,000.
  3. Length of Credit History (15%): Older accounts show stability. Closing your first credit card could shorten your history and hurt your score.
  4. Credit Mix (10%): A blend of credit types (e.g., credit cards, mortgages, auto loans) signals you can handle diverse debt.
  5. New Credit (10%): Applying for multiple loans or cards in a short period raises red flags. Each “hard inquiry” can knock off a few points.

VantageScore® uses similar factors but tweaks the weights. For instance, it prioritizes payment history and credit utilization even more heavily.

Pro Tip: Your income, savings, or job title don’t directly affect your score—but they can influence a lender’s overall decision.

Want to boost your score quickly? Check out the Credit Rebuilder Program, which will help you improve your score in just six months. 

Why Does My Credit Score Matter? It’s More Than Just Loans

A strong credit score isn’t just about qualifying for a mortgage. It impacts everyday life in surprising ways:

  • Lower Interest Rates: A 100-point difference could save you $40,000 in interest on a 30-year mortgage.
  • Renting an Apartment: Landlords often check credit to gauge if you’ll pay rent reliably. A poor score might mean a higher security deposit—or rejection.
  • Insurance Premiums: Some insurers charge higher rates for low scores, linking them to “riskier” behavior. That said, it’s worth noting that not all states allow this practice. For example, California, Massachusetts, and Hawaii restrict or ban the use of credit-based insurance scores in setting auto insurance rates. As well, your actual credit score isn’t used—insurers use their own formula based on credit behaviors (like payment history, debt levels, etc.).Job Opportunities: Employers in finance, government, or roles with expense accounts may review credit during hiring.
  • Utilities and Cell Phones: Companies might require deposits if your score is low.

Even small wins matter. For example, improving from a “fair” to “good” score could drop your auto loan APR from 9% to 6%, saving $1,500 on a $20,000 loan.

How Can I Improve My Credit Score? Actionable Steps

How Can I Improve My Credit Score? Actionable Steps

Building or repairing credit takes time, but these strategies deliver results:

  1. Pay Bills Like Clockwork
    Set up autopay for minimum payments to avoid late fees. If you miss a payment, catch up ASAP—most lenders only report late payments after 30 days.
  2. Tackle High Credit Card Balances
    Focus on paying down cards with balances above 30% utilization first. Not sure where to start? Try the “debt snowball” (pay smallest debts first) or “debt avalanche” (target high-interest debt).
  3. Check Your Credit Reports for Errors
    If you’ve been through a financial crisis, there’s about a 40% chance your credit report contains an error. Visit AnnualCreditReport.com to access your free credit report. Look for and dispute any inaccuracies, such as accounts you didn’t open, incorrect late payments, or outdated balances.

In 7 Steps to a 720 Credit Score, we teach people how to: 1) identify high-priority errors; and 2) dispute these errors. As well, if you have been through a bankruptcy, we will introduce you to a law firm who will review your credit report for errors and represent you for free if any of your credit-related rights have been violated. 

  1. Be Selective About Opening New Accounts Unless Necessary
    Each time you apply for new credit, it may trigger a hard inquiry on your report, which can cause a small dip in your score—typically around 5 to 10 points. The good news? These effects are usually temporary and drop off after about six months. And if you’re rate-shopping for a mortgage or auto loan within a short window (usually 14–45 days), multiple inquiries are often grouped as one.
  2. Keep Old Accounts Open (Even If You Don’t Use Them)
    Closing a credit card lowers your total available credit, which can spike your utilization ratio. Instead, use it occasionally for small purchases to keep it active.
  3. Consider Credit-Building Tools

Consider credit-building tools like secured credit cards, where you deposit cash (e.g., $500) as your credit limit, use it responsibly, and (eventually) get the deposit back. You can find a list of credit cards, including secured credit cards, that are likely to pre-approve people with poor credit here.  Another option is a credit-builder loan, where your payments are reported to the credit bureaus, which helps your score improve. Check out the Credit Rebuilder Program here. 

Patience Pays Off: Negative marks (like late payments) fade from your report after 7 years. Focus on consistent habits, and you’ll see gradual progress. When you join the Credit Rebuilder Program, you’ll learn strategies to improve your score in just 12 to 24 months, even while those negative items are still on your report.

The Bottom Line

Your credit score isn’t just a number—it’s a tool that opens (or closes) doors to financial opportunities. By understanding how it works and taking small, consistent steps to improve it, you’ll save money, reduce stress, and gain control over your financial future. Start by checking your score (many banks offer free access), then tackle one habit at a time. Remember: Even “good” credit can always get better!

Father’s Day Next Sunday, by 720 Credit Score

Posted on June 11, 2023 by - Credit Score

As many of you know, there is nothing that excites me more than being a great Dad (and no, I’m not there yet).
Just this weekend, I told my oldest daughter Ava that this was going to be “our” day, and I picked her up from school on Friday, and for the next 23 hours, it was just the two of us (with no brothers or sisters).
Many the ideas I get from Fathering come from what I have learned from other great dads… one of them is my close friend, Greg Hague.
Greg, like me is SO passionate about Fathering, that when he hears a story about a great Father, he writes about it and sends it out to everyone he knows.
These stories are touching, inspiring, and designed to make you think.  Many times after reading one of his stories, I’ve though “I should do this with my kids.”
Over the months and years, he has written so many great stories, that he decided to put them all into a book.
If you want a great Father’s Day gift, I HIGHLY recommend you buy this book.
Young or old, your Father will be inspired by the stories in the book!  And most likely, it will inspire him to be an even better Dad.  🙂
To buy printed version, click here.
To buy digital version, click here.
That is one thing the world needs… more Great Dads!
Have a great week!
Philip
P.S. If you order today or tomorrow, you will have the book by Sunday!  You will thank me!

3 Credit Scams That Are Hurting Your Credit Score

Posted on December 27, 2021 by - Credit Score

The Credit and Debt Summit is exposing one credit scam after another. This time, credit expert Brian Diez exposed three credit scams that could be hurting your credit score and your ability to secure a loan.
Are you a victim?
Here are the three scams:
Credit Scam #1: Lenders oversee themselves.
Lenders report information to the credit bureaus. If you submit a claim that disputes this information, guess who is responsible for verifying the information? Lenders.
Imagine that you were to file a lawsuit against a doctor. You arrive at court to prove your case, and the doctor is sitting on the jury responsible for deciding whether your case is valid.
Such is the system of repairing errors on a credit report.
Credit Scam #2: Lenders benefit from errors.
And it gets even worse. Lenders benefit from sloppy records. If a lender causes an error to appear on your credit report, your credit score could drop. In turn, the lender can charge you more in interest.
“This scam is propagated by a system that almost guarantees errors,” Diez told attendees at the Credit and Debt Summit. It works like this:
The computer systems that collect information from lenders and then report this information to the credit bureaus do not require an exact match. If a Social Security number matches a last name, the system considers it “good enough,” even if the first name and address don’t match.
You can see how easily a mistake can appear on your credit report. In fact, 44 percent of reports of identity theft are nothing more than a merged credit file.
Credit Scam #3: Unless you are a politician, celebrity, or attorney, your complaint will not be taken seriously.
Making matters worse, if you try to correct an error on your credit report, you will have to jump through hoops … unless you are “someone important.”
Let’s imagine that you are one of the many people with an error on your credit report. (About 80 percent of people have at least one credit report error.) You contact the lender to report the mistake. The lender tells you to send a letter, which you promptly drop in the mail.
If you are a celebrity, politician, or lawyer, your letter will be handled immediately. Otherwise, your letter will be sent through a computer system that is responsible with determining whether your complaint is frivolous. If the computer says the letter is frivolous, your complaint won’t even be processed.
If the computer decides that your complaint has merit, your letter will be outsourced to Costa Rica, the Philippines, India, or Jamaica. A foreigner who most likely speaks English as a second language will be responsible for reading your letter and assigning a two-digit code, which determines the next action that should be taken on your complaint. Now a computer will spit out a letter telling you what will happen next.
Instead of doing actual research, Diez says the lenders just take the easy way out. So unless you are a celebrity, lawyer, or politician, you will be treated like a commoner. The worst part, your credit score just keeps dropping.

What if…, by 720 Credit Score

Posted on December 25, 2021 by - Credit Score

What if… today was THE day.
Today was the day when you stopped worrying about that thing that has been nagging you all year.
Today was the day when you realized that the struggles you have been going through have been blessings in disgu
ise… and now, the blessings are filling your heart with joy.
Today is the day that you will look back with immense gratitude, as this was YOUR day.
Today is the day to feel blessed, because 2013 is going to be unlike any other year of your life.
Are you ready for it?
This is YOUR year!
This year is going to be easier for you and your family.
This is the year you will have the breakthrough you wanted financially.
This is the year that the pain you feel… will be taken away from you.
Together, let’s all come together and me 2013 the best years of our life. That’s what I’m going to do… will you come with me?
Post any thoughts below.
With all our love… have a Merry Christmas, and if you don’t celebrate Christmas, have a wonderful Holiday!
To an awesome 2013,
Philip, Lily, Ava, Dominic, Lucas and Emma

Super Bowl ticket give-a-way…

Posted on December 23, 2021 by - Credit Score

As you know, I’m a BIG fan of being a father, so naturally … I’m very involved with the National Center for Fathering and learning about “Championship Fathering.”
I wanted to let you know that the Center is raising awareness of fathering by giving away two tickets to the Super Bowl to a father and his lucky son or daughter!
Do you know a great father who would like to know about this?
If yes, please send this to him! Or, if you are a father, you can enter the contest yourself …

  1. Like the National Center for Fathering’s Facebook page: http://www.facebook.com/NCF4dads
  2. Submit your email address to receive exact rules and regulations.

It’s that easy!
Please send this to any GREAT DADS who love football!
– Philip Tirone

Have You Been Scammed or Ripped Off? How to Get Help and Get The Problem Resolved

Posted on December 21, 2021 by - Credit Score

If you feel like a company you paid for a service has not delivered the best place to start to attempt to resolve the issue is to contact the company directly. If you’ve tried repeatedly to get your issue resolved by sending an email or leaving voice mail and that’s not getting any attention, send a letter by some traceable means that provides you with proof of delivery. A signature or name of who signed for it is even more beneficial.
The least expensive service to use of to send your letter through the post office by certified mail, return receipt requested. When the letter is signed for you will get back a green postcard showing when it was received and who signed for it. You may also decide to send your letter by FedEx or some other express mail service to get additional attention.
Keep the return receipt postcard or some other delivered proof with a copy of the letter you sent in a safe place. You’ll probably need it later if you have to escalate your dispute.
In your letter give the company 14 days to respond, keep a friendly tone, and state what your issue is and the resolution you would like to receive. There is no need to be mean or nasty in this letter.
Let the company know that if they fail to respond you will escalate the matter to state and federal officials but you want to come to a win-win outcome that is good for both you and reasonable for the company.
Sometimes a company will come back with a refund offer to help remedy the dispute. While the refund offer may not be for the full amount you feel you deserve, only you can determine if the partial refund provides you with a satisfactory outcome and not left feeling cheated.
You don’t have to accept less than you are owed but there must be a cost-benefit determination to figure out if more time, pressure, and escalation on your part is going to result in a better outcome for you.
If the company does not respond or you feel it is insufficient you can escalate your claim to your State Attorney General, the Better Business Bureau, your local consumer affairs office or other enforcement office. You can find a listing of all consumer protection offices online here.
If you’ve been ripped off or have a complaint about a company that has taken your money or made you promises for a loan or was selling you some money saving service, credit repair, or debt help and just hasn’t delivered there are plenty of places to file a complaint in hopes of getting help.
But you may want to consider wiling an online report using the scam report and consumer complaint submission form.
This free service is unique as compared to other online complaint portals in that it companies that are the subject of a filed complaint are contacted and asked to respond directly to your complaint.
The goal of a consumer complaint using this service is to create a conduit for a solution and the problem being resolved.
Without a doubt the effective route to a resolution is to be levelheaded, persistent, and do what you can to work with the company first. Give them a chance to do the right thing. Your documentation that you tried and they did not want to assist you in resolving the dispute will come in handy if you later file your complaint elsewhere.
While this guide is written more for people that feel cheated by a debt relief company, the detailed step-by-step refund directions are still good for almost any dispute.
Author: This article was contributed by GetOutOfDebt.org, a site that provides free help for people looking for advice on how to get out of debt or getting out of debt.
Source: Have You Been Scammed or Ripped Off? How to Get Help and Get The Problem Resolved.

Banking Scams: How Banks Are Legally Stealing Your Money and What You Can Do About It

Posted on December 17, 2021 by - Credit Score

The down economy has hurt more than just general public – banks are feeling the pinch as well. In an effort to generate extra income, they’ve become quite creative and sneaky in their tactics. We refer to these at 720CreditScore.com as banking scams. They are the ways banks “legally steal” from you month after month, most times without you even realizing it.
Whether you want to hear it or not, the truth is that the banks are in bed with the government and although the government tells the banks to “treat people fairly,” they continue to steal your money, while greedily taking money from you (via the government and your tax dollars) at the same time.
To spread the message and help people avoid these banking scams, we’re inviting everyone to share their stories of banking scams that may have happened to you. The goal is to make the public aware of what’s really going on so you can protect your hard-earned money. A few dollars here and there may not seem like much, but when you add up the thousands of accounts they are doing this to, you can see how much banks depend on these banking scams.
This is an important issue that we believe strongly about and we greatly appreciate your time in sharing your scam. If you don’t have a story to share, take a few minutes and read through the scams to make sure you don’t become a victim, or share this page with others who you think will benefit from the information.
To make it easier to find your story, if you’re sharing a scam please start your comment with the words “BANKING SCAM.”
If you have a facebook account, post this via the Facebook Comments below so we can get this message out!
In the spirit of sharing, here is one that happened to me recently.
US Bank: BANKING SCAM
If this isn’t a scam from US Bank, I’m not sure what is.
Last week I was helping my Mother in Law close out her lease with US Bank, she owed the final payment of $395, so I called to pay it.
Before they collected the payment, I told the US Bank Representative that my Mother just moved from California to Arizona eight weeks ago. She gladly took the information and then told me that she will have to charge my credit card $405 instead of $395. I asked, “Why?.”
Well, I found out that it is US Bank’s policy to charge an extra $10 fee for billing addresses in Arizona. Interesting.
Hmmm… I have clients all over the world and it doesn’t cost me extra money to charge a person’s credit card in Arizona vs. California. Even if it did, NO WAY it would be $10. And, even if I were charged extra, I wouldn’t even think about passing that on to the client.
Here I am, five days after this happened blogging about this US Bank Scam… to my entire client base. These companies need to start focusing on building more value to their clients instead of penny pinching all of us.
Here is how I got around the $10 scam. I told her to change my address back to the California address and rerun it. I told her, “If you charge me the $10 fee, I refuse to pay the bill.” She changed the address, I saved $10, and I’m not using US Bank again!
Share your Scam!!
Philip Tirone is a Credit Scoring Expert and Champion for the Human Race

Other Scam Posts:
The Retail Store Credit Card Scam – Click to Read
The Dirty Little Secret that Hurts Credit – Click to Read
Protecting Yourself from Common Bankruptcy Scams – Click to Read

Sands Tourism Sent Me Two Scratch Off Tickets and Say I’m a Winner. Is This a Scam? – Luena

Posted on December 16, 2021 by - Credit Score

“Dear Steve,
I received an envelope thru my post office box, front of the envelope no name only our mailing address which is PO. Box etc… as I open this envelope it was promotional brochure from sandstourism on their 9th anniversary and there is a 2 scratch and win promo ticket which I scratch the first one it said “thank you” and the second ticket I scratch ” 2nd prize USD 160,000.00 so I called the number on the brochure to claim the prize.
When I’m claiming my prize they told me to scanned the promo ticket so they can verified the bar codes if its valid. they call me personally that the ticket is valid so they asked me a clients#. which I don’t have.. meaning in order for you get this client number you have be a member on this company (hondings) they are investor in Hongkong.
so they research my name if I’m one of the investor in this company which my name did not show. so they called me again telling me because I’m not a n investor i may not be qualified to get the prize they told the major prize is hold for the investor and I ask them if this ticket is hold for one of the investor why did i get this in my mail?
they answer it got mixed up when they in put the promo ticket they accident put on my box number.. so i fight for it i told them no one can claim this ticket accept for me because i have the original ticket after how many days they called me that the company decided to grant the prize to me.. the company holding called me today for verification, and read me a letter of authorization of Hongkong in short ” in order for the company to release this big amount of money need to go in court for legal documentation they asking me a security deposit $3336.04, which after I received my prize they will reimburse the $3260.04, the $100.00 is process fee. I’ve been communicating them for 1 week I called them or they will call me.
should I send them the money? what if this is a scammed? How would i find out if this is a scammed?
Luena”

Dear Luena,
No need to do any more research, it’s a scam.
They are trying to con you to put up thousands of dollars in hopes of getting a big payday. It’s an age old scam. You dangle a big prize out there and make the victim think they only have to invest X to get Y. It seems like a variation of the Nigerian Oil scam.
If you would like to report the mailing, you can file a complaint with the U.S. Postal Inspection Service online, click here.
Save your money.
Please post your responses and follow-up messages to me on this in the comments section below.
Big Hug!

@GetOutOfDebtGuy
Author: This article was contributed by GetOutOfDebt.org, a site that provides free help for people looking for advice on how to get out of debt or getting out of debt.
Source: Sands Tourism Sent Me Two Scratch Off Tickets and Say I’m a Winner. Is This a Scam? – Luena

Rebuilding Credit After Bankruptcy

Posted on November 12, 2021 by - Bankruptcy, CREDIT BLOG, Credit Score

Like a lot of folks who start trying to rebuild credit after bankruptcy, you might be thinking of wiping your hands clean of credit. And it might make sense that the fastest way to move past the bankruptcy is to stop relying on the loans and credit cards that precipitated the bankruptcy.
But contrary to popular belief, using credit appropriately in the wake of a bankruptcy is the best way to rebuild credit after bankruptcy. Of all the bankruptcy facts, this one might be the most important. Indeed, you might be able to build your score to 720 within a couple of years of declaring bankruptcy if you follow a smart plan to re-establish credit.
This twofold plan to learn how to fix credit starts by opening new lines of credit and concludes with paying your bills on time and in full.
Rebuilding Credit After Bankruptcy Rule #1: Open new lines of credit!
You might hear claims that you can have a bankruptcy wiped from your record. Beware of these claims! There is no legal way to wipe a bankruptcy from your credit report. That said, time does heal. The credit-scoring bureaus—Equifax, TransUnion, and Experian—are more concerned with your recent behavior than they are with your past behavior. The trick, then, is to persuade the bureaus to pay more attention to your recent good behavior than to your past behavior. By establishing new credit and using it responsibly, you can prove to the bureaus that you are a new person—that the bankruptcy forced you to change your habits and establish smarter financial strategies.
After you have declared bankruptcy, open three new credit cards (Visa, MasterCard, or American Express) and one installment loan as part of your plan to rebuild credit after bankruptcy. Taking out a car loan is not advisable, in part because of the high interest rates you would assume, but also because of the debt you would add to your credit report. Instead, buy a new appliance, piece of furniture, or electronic using an installment loan. Then pay the loan off within six months.
Keep the credit cards active by using them at least every other month. Make only small charges (preferably less than 10 percent of the limit), and pay the balances in full.
Of course, with both the credit cards and installment loan, be aware of high interest rates. Because of your bankruptcy, you will likely not qualify for the best interest rates, which is why I stress the importance of paying the balances in full as quickly as possible.
Another note about opening new accounts: Insomuch as it is possible, open these accounts all at once and as soon as possible after the bankruptcy. The credit-scoring bureaus respond best to accounts that have been open for long periods of time. Your future credit score will benefit best if you open the accounts now.
By opening these new lines of credit, you can begin to rebuild your credit after bankruptcy by giving the credit bureaus new information on which they can judge your creditworthiness. Show them you have changed your patterns of behavior.
In this way, you can immediately begin proving to the credit bureaus that the bankruptcy allowed you to turn over a new leaf and change your payment behavior.
Rebuilding Credit After Bankruptcy Rule #2: Never, never make a late payment!
After a bankruptcy, the credit-scoring bureaus will have an eye on you, even as your score begins to climb. If you make a payment that is even one day late, the bureaus will assume you are back to your old ways, and your progress will be for naught.
To best rebuild your credit after bankruptcy, you must pay your bills immediately every single month. This means that you must live within your means. Be sure to read our article about how to create a budget, find money, and establish habits that best afford you to bounce back after a bankruptcy.

The important part of improving your score fast, by 720 Credit Score

Posted on October 4, 2021 by - Bankruptcy, CREDIT BLOG, Credit Score, CREDIT SCORING

If I had to choose one thing as the most important aspect for raising your score after a financial meltdown, it would be this: Apply for new credit.
The problem is: How can you qualify when your score is low?
We generally refer people to secured cards, but even then: If you are already having financial problems, how can you afford the deposit required by secured cards?
Fortunately, our researcher, Natalie, found a new card that accepts applications for people with a score as low as 580. It’s not a secured card, so you don’t have to put any money down to qualify.
If you don’t have three cards in your name and cannot afford secured cards, you should apply for this card right away. Don’t wait, even for a day since we don’t know how long the guarantee will last.
Of course, we’ve done the research, and we believe this is one of the best subprime cards out there. It isn’t one of the 46% of cards that will hurt your score, so as long as you keep your balance low and pay your bills on time, this card will help your score increase.
Click here to apply.