Smart Spending Tips asked six regular contributors to Sesame Speaks, the Smart Spending Tips blog, to comment on the statement, “You are financially more than your credit score.” Your credit score is just one piece of information that lenders use Your credit score is a snapshot of your credit history and how you have managed debt in the past. Although important, it is not the only component that lenders consider when evaluating your applications for loans or credit cards. Other financial factors include your income, debt-to-income ratio, employment history, and savings and investment balances. Building an emergency fund, creating a…

Smart Spending Tips highlights 20 reasons it’s a good idea to build your credit. Responsible credit behavior allows you to build your credit and achieve financial freedom. Here are 20 reasons why it’s important to build your credit: Better interest rates. With a higher credit score, you may qualify for better interest rates on loans and credit cards, which can save you money over time. Increased borrowing power. A strong credit score can give you more borrowing power, allowing you to qualify for higher credit limits and larger loans. Lower insurance rates. Some insurance companies use credit-based insurance scores to…

Smart Spending Tips discusses the AI revolution and how it has ushered in a new era of financial assessment. The landscape of credit assessment is shifting, driven by the transformative power of artificial intelligence (AI). Traditionally reliant on historical data and credit scores, lenders now embrace AI-powered algorithms to evaluate creditworthiness Beyond traditional credit scoring AI enables lenders to analyze vast amounts of data from diverse sources, going beyond factors used to calculate traditional credit scores. This includes alternative data such as social media activity, online behavior, and transaction patterns. By considering a broader range of factors, AI algorithms can…

Smart Spending Tips with four credit management letters that may help you on your mission to build great credit. If you’re trying to build or protect a good credit rating, credit report blemishes won’t help. What may help is a well-written letter. These four letters can help you discover if a debt is your responsibility, help you remove incorrect credit entries or even delete accurate (but damaging) information.  Debt validation letter. When you receive a demand for payment from a debt collector, you’re entitled to proof that you owe the money, including the creditor’s name and the date you incurred the debt…

Smart Spending Tips discusses protecting your credit health and identity with credit monitoring. Protecting your credit health and identity is extraordinarily important. A poor credit score could cost you thousands yearly in higher borrowing, insurance, and home rental costs. And bad credit can stop you from getting the job you need to get out of financial trouble. Meanwhile, identity theft is a growing problem that affects 1.4 million Americans each year. It can ruin your credit and obsess your mind while trying to untangle your finances from the fraudsters’. Credit monitoring can be an effective way of protecting your credit…

Smart Spending Tips discusses credit report inaccuracies and what happens when you dispute something on your credit reports. You may be surprised at the number of people who have checked their credit reports and found inaccurate information. Finding a mistake on one or more of your reports can be frustrating, but do you know what to do if you find such an error? What inaccuracies could you find, and what happens when you dispute something on your credit reports? A surprising number of credit reports contain errors or inaccurate information. These errors are frustrating and can have a negative impact…

Smart Spending Tips explains the synergy between credit score and financial fitness for financial well-being. Credit score: A snapshot of credit management You can think of your credit score as a snapshot summarizing your borrowing habits, aka credit management. It’s 3-digit a number (typically ranging from 300 to 850) that lenders use to assess your creditworthiness or how likely you are to repay borrowed money on time and in full. Several factors influence your credit score, including: Payment history. This is the biggest factor, accounting for roughly 35% of your credit score. Payment history reflects how consistently you’ve made payments…

Smart Spending Tips’s tips for understanding your credit score and credit report. Understanding your credit scores is beneficial for your financial health. They’re so important that an entire industry exists just to monitor and report your credit score. So, what does that three-digit number really mean? In a nutshell, it tells lenders how responsible you are with managing debt and your money in general. If you pay your bills on time and don’t carry a lot of debt, you’re considered a “good” credit risk. Generally, that makes it easier to get loans, credit cards, or a mortgage and snag the…

Smart Spending Tips discusses facts about your credit score that may help you manage it better for future financial success. When managing personal finances, few numbers are as important as your credit score. It’s a key factor that lenders use to decide whether to approve your loan applications, set interest rates, and even determine your eligibility for housing or employment. Despite its importance, many people don’t fully understand how credit scores work or how they are calculated. 1. Your credit score isn’t the same everywhere One of the most surprising aspects of credit scoring is that you have more than…

Smart Spending Tips discusses the value of a rent reporting service in establishing or building credit. The hardest part of building a credit record can be getting started. How do you show you can use credit responsibly when many lenders won’t give you credit until you have a credit history? Rebuilding damaged credit can also be challenging if you cannot get credit to demonstrate responsible credit behavior. A newer trend that may help change this dynamic is the inclusion of rental payments in credit histories. This practice is catching on and already positively impacting credit scores. Reporting rent payments to…