The Sticky Note Budget

Credit scores are generated by FICO and VantageScore and produce a number based on all three credit reports. A great goal is to get your credit score to a minimum of 670, with the ultimate goal of getting to 740 or above.

I hear this all the time! Myth #1: You do not have to have a balance on your credit score to build good credit. But there are many reasons to have a credit card. Credit card should be used AND paid OFF every payday. Doing that will build a good score and minimize interest.

Your credit reports is a lot like a report card. It tracks each of your financial accounts, under your identity. Look over the report and make sure every account listed is something that you opened.

Don't avoid your credit anymore! Find you score and download your credit report so you know what you are working with. This information will help you decide what you need to do next with your credit. You may need to dispute something on your report or apply for a credit card to establish yourself.

The ONLY website you can download your three credit scores for free. You can download them all at once, or one at a time through the year.

There are three bureaus that track your financial actions. You credit reports can go back as far as 10 years. The actions you take today will impact you for the next decade. Be kind to future you.

Embrace reality even if it burns you! Take control of your credit score today by arming yourself with information. Improving your credit score will improve your life. Not ruining your credit score because you don't know what you're doing...priceless. Employers and landlords check your credit score. Interest rates, deposit requirements, and insurance rates are based on your credit score.

Loans are either secured or unsecured, changing the level of risk. You may be able to find a loan with a lower interest if you have something to put down as value for the loan, like the title to your car. If you have no credit, you can open a secured credit card that is secured with cash to establish your report.

There is a loan that is a hybrid of revolving and installment loans. This is most often seen in a HELOC or Home Equity Line of Credit. For the first 10 years of the loan, it functions as a revolving line of credit that may come with a debit card, checks, and the ability to advance money into your checking account. The second 10 years of the loan function like an installment loan where you pay off the final balance of what you racked up in the first 10 years. At the end of this, the loan is paid off and closed out. This loan is amazing for homeowners because it allows you to tap into your home's equity, these loans lower interest rates, and you don't have to burn through all your savings if you need a new furnace and a water heater in the same month.

Installment credit is what I think of when I think of a traditional loan. Upfront the lender cuts a check to buy your car or house. Technically at that point, they own it and you pay them a fixed payment for a fixed amount of time and interest rate and at the end, you own it. But you don't own it until you pay every single cent.

Did you know there are different types of credit. I like to think of revolving credit as a circle loan. Kinda like a revolving door that can turn over and over. A revolving loan is borrow, pay down, borrow, pay down and it doesn't really end unless you close it or you don't use it or use it badly and they close it.

There are two types of credit, and not having both will affect your credit score. A good formula for good credit variety is at least three loans, one revolving, one installment, plus one more. That may look like a credit card, an overdraft line of credit, and a mortgage. Showing you can handle a variety of credit is good for your credit score.