# Credit scores are based on the information found on a credit report. This score is a three-digit rating of your credit risk. Credit scores range from 300 to 850, with higher scores indicating lower credit risk. Credit scores can be used by creditors, lenders, utility companies, landlords, and employers, to name a few.

So, what do you do if you have a lower credit score? Let’s first consider what impacts a credit score.

There are five primary factors impacting a person’s credit score—payment history, credit utilization, length of credit history, types of credit, and credit inquiries.

__*Payment History.*__ A person’s ability to pay their loans in accordance with the agreed upon terms is the most important factor of a credit score. Payments that are thirty, sixty, or ninety days past due reduces a credit score. Likewise, charge offs, liens, debt settlements, bankruptcies, and other public judgments can injure a person’s credit score.

__*Credit utilization*.__ Credit utilization is the amount of credit used versus the amount available. As an example, a person using $15,000 of their $30,000 available credit has a credit utilization ratio of 50%. Higher credit utilization ratios may indicate higher credit risk and can negatively impact a score. Credit utilization is the second most important factor of a credit score.

__*Length of credit history*.__ Credit scores favorably consider longer credit histories. Longer histories provide evidence of a person’s ability to manage credit appropriately. Longer credit histories can demonstrate reduced credit risk and, therefore, can increase a person’s credit score.

__*Types of credit*.__ The mix of credit a person uses also impacts their credit score. Installment loans, like mortgages, are consider more favorably than revolving credit, like credit card or home equity lines of credit.

__*Credit inquiries*.__ There are two types of credit inquiries—hard and soft checks (or inquiries). A hard check is used when applying for a loan or credit. Multiple hard checks within a short period of time can negatively impact a credit score. Soft checks allow an organization to see an individual’s credit score without negatively impacting the score. These may occur as part of a background check or when credit card companies look to see what type of credit offers they can provide potential customers.


![](https://static.wixstatic.com/media/11062b_0546fcb4dbb241f29b7fb4701daad470~mv2.jpg/v1/fill/w_1480,h_988,al_c,q_90/11062b_0546fcb4dbb241f29b7fb4701daad470~mv2.webp)


Now that we’ve covered what impacts a score, let’s consider how to improve a credit score. The good news is there are ways to improve a credit score over time.
#### 
## Here are some common strategies that have been shown to increase a credit score:
### 
### __1. Get caught up on past due payments.__

One of the first steps a person can take to improve their credit score it to get caught up on any late payments.
### 
### __2. Pay bills on time.__

Moving forward, make sure you pay your bills on time. One of the ways you can ensure this occur is by setting up automatic payments either through the lender or through the bank.
### 
### __3. Reduce credit utilization.__

High credit utilization decreases credit score. Therefore, paying off debt can be an effective strategy for increasing a credit score.
### 
### __4. Fix any errors.__

Sometimes, you may find an error on your report. This may be due to identity theft or some other reason. Errors resulting in a reporting of late payments, default, or higher credit utilization can decrease a credit score. Therefore, cleaning up these errors can improve the score.


![](https://static.wixstatic.com/media/11062b_69fec10c48e84be3b86c13fdcb12dffe~mv2.jpg/v1/fill/w_1480,h_987,al_c,q_90/11062b_69fec10c48e84be3b86c13fdcb12dffe~mv2.webp)

#### 
## If you were to discover an error on your credit report, take these next steps:

*__Step 1: Review all three credit bureau reports.__* Sometimes an error only occurs on one report. However, if the error is on multiple reports, you must work with each bureau.

__*Step 2: Gather all relevant documentation to demonstrate the item on the report is an error.*__ This may include bank statements, birth certificates, or other pertinent information.

*__Step 3: Contact the credit furnisher.__* Reach out to the company that reported the error to the credit bureau. They may be able to assist you moving forward and close the account if it is still open.

*__Step 4. Call the credit bureau.__* Each credit bureau has their own phone number. Reach out to the bureau to make them aware and remedy the problem.

__*Step 5: Mail the credit bureau.*__ It is possible you will not be able to remedy the problem over the phone. In this case, you will need to submit a letter and the relevant documentation to the bureau. Follow any guidance provided by the bureaus in Step 4.

__*Step 6: Follow up.*__ Assume it is your responsibility to follow up on the matter.

Can you go through life without a credit report and credit score? You can. But because of the wide use of credit scores, it is important to pay attention them. You can get a free credit report from the three credit bureaus (TransUnion, Equifax, and Experian) each year through AnnualCreditReport.com.  Go ahead and check out your credit report today.

You were meant for more. Your money was meant for more. You and your money are meant for an exciting, adventurous, and satisfying purpose. You were designed to live and give generously. And deep inside you know this and want this.

Art Rainer

Debt

There are five primary factors impacting a person’s credit score—let's look at the more closely.

How to Improve Your Credit Score

## “Then he said, “Beware! Guard against every kind of greed. Life is not measured by how much you own.” - Luke 12:15
 
Don’t ever let anyone tell you that being frugal is your problem.

Oftentimes, we take the words “frugal” and “stingy” to mean the same thing. But let’s look up the definition of each one. Frugal: characterized by or reflecting economy in the use of resources. Stingy: not generous or liberal; sparing or scant in using, giving, or spending. That’s according to the Merriam-Webster dictionary.

Being frugal means to be mindful in the spending of the resources you have. Like, not spending more than you should on produce at the grocery store, buying clothes at stores that aren’t as costly, not wasting food, choosing between wants and needs.

But being stingy means to be unwilling to spend where, maybe, you can or should. And being unwilling to give or spend on others.

## Why are we unwilling to give? Is it because we want to keep more? Is it because we don’t feel comfortable with the thought of not having enough? Is it because we’re only concerned with ourselves?

Stinginess is oftentimes the symptom of greediness. So, it’s not our frugality that’s the problem. It’s our greed.

Sodom was destroyed because its people were blessed with abundance, but they chose not to help the poor and the needy ([Ezekiel 16:49](https://www.biblegateway.com/passage/?search=Ezekiel+16%3A49&version=NIV)). They had all the food and riches they could ask for, but their possessions could not save them. Rather, the security they found in their possessions was the very thing that condemned them.

The Lord is so gracious. He only requires us to give 10% of what He has given to us. If we had the same power with the stewards of our own money that God has with us, we’d probably require 99.9% (or all of it) back. But God knows our heart. Those who sow sparingly shall reap sparingly. But those who sow generously shall reap generously ([2 Corinthians 9:6](https://www.biblegateway.com/passage/?search=2+Corinthians+9%3A6&version=NIV)). 

Idolatry is not just worshipping statues ([Isaiah 44:9](https://www.biblegateway.com/passage/?search=Isaiah+44%3A9&version=NIV)). It looks different for each of us. For some, it may mean worshipping themselves. For someone else, it may mean putting their family’s desires before God. And for another, it may mean worshipping money. But [Colossians 3:5](https://www.biblegateway.com/passage/?search=Colossians+3%3A5&version=NIV) tells us to put our ways to death. We can overcome greed if we choose to desire our Lord Almighty, instead. If we desire Him, He will take away our desires for earthly things ([Psalm 73:25](https://www.biblegateway.com/passage/?search=Psalm+73%3A25&version=NIV)). 

None of the things we acquire here on earth can buy our way into Heaven ([Ephesians 5:5](https://www.biblegateway.com/passage/?search=Ephesians+5%3A5&version=NIV)). So, don’t allow false teachers to convince you otherwise ([2 Peter 2:1, 3](https://www.biblegateway.com/passage/?search=2+Peter+2%3A1-3&version=NIV)). The riches will never make you happy. Neither will you ever be satisfied. The more you get, the more you’ll want to take ([Proverbs 30:15](https://www.biblegateway.com/passage/?search=Proverbs+30%3A15&version=NIV)). And it will not save you any more than it saves them.

It’s okay not to gain all the treasures of this world. It’s okay if you don’t feel like you have enough money saved. We’re human, and we do have fears. But God did not design us to have a spirit of fear. Being fearful means we’re not trusting Him to provide for us. He designed us with a spirit of power, love and a sound mind ([2 Timothy 1:7](https://www.biblegateway.com/passage/?search=2+Timothy+1%3A7&version=NIV)). A power that assures us we can do all things through Christ ([Philippians 4:13](https://www.biblegateway.com/passage/?search=Philippians+4%3A13&version=NIV)). A sound mind that trusts Him with every aspect of our lives to provide for our needs and give us our heart’s desire. A love that transcends limitations, lends a helping hand, and gives freely and openly to others. For God loves a cheerful giver ([2 Corinthians 9:7](https://www.biblegateway.com/passage/?search=2+Corinthians+9%3A7%29&version=NIV)).

Equipping people worldwide to faithfully apply God’s financial principles so they may know Christ more intimately.

Compass Financial

The Bible on Money

Greed in the Bible

## Community development investing is one way that faith-based investors can use their investments to make a real impact on the communities where they live and work. 

Investing in community development finance institutions provides aspiring entrepreneurs with the resources they need to launch businesses and services that many underserved, low-income and minority communities might be lacking. Since generally CDFIs and borrowers are members of the community, they have a better understanding of what would benefit the community than an outsider might. This makes it easier for the most critical needs to be met in the communities where they are based.

The COVID-19 pandemic exposed some of the unique challenges faced by Black, indigenous and entrepreneurs of color in underserved rural and urban areas when it comes to access to capital. This capital is the funding necessary to operate and grow these entrepreneurs’ small businesses. The uneven access to the federal government’s Paycheck Protection Program (PPP) loans and other emergency financial assistance highlighted a clear funding gap that traditional banks have not filled.

To meet these needs, some borrowers have turned to alternative sources of capital such CDFIs, Community Development Credit Unions, community loan funds and other non-predatory lenders who have proven that they can creatively and efficiently deploy capital, tailored technical assistance and other support systems to help them recover, thrive and grow. 

## Post-COVID pressures continue

As small businesses — particularly those in underserved, minority and low-income communities — have slowly emerged from the COVID-19 winter, the reality of rising inflation has brought new concerns, but these concerns come without the COVID relief valves available at the height of the crisis.

Many businesses that took big hits during that time now face three major concerns: First, they must grapple with increasing interest rates and the resulting higher costs of borrowing. Second, mounting fears of reduced consumer spending arise as customers adjust to lower disposable incomes due to increased costs of living. Finally, these small businesses face hiring challenges due to the continuing tight job market, when all businesses are fighting to retain employees.

## Investors can be part of the solution

It is no surprise that impact investors are particularly interested in small businesses that are important drivers of the economy. These small businesses support neighborhoods and communities by creating meaningful jobs and driving innovation and competition. 

Through investments in CDFIs, investors can support mission-driven alternative lenders that help maintain momentum in the recovery of diverse and low-income entrepreneurs. These institutions are nimble and innovative in reaching minority communities in a way traditional lenders are not. Located in the communities where their borrowers are, these lenders offer funding for businesses and services that are critical to the local community, such as loans to support new affordable housing initiatives, increased access to health care and access to clean water. 

A simple way for individuals or institutions to support businesses in underserved and underrepresented communities is to identify investment products that channel a portion of assets to CDI. For example, at [Praxis Mutual Funds®](https://www.praxismutualfunds.com/?utm_campaign=cdi-all&utm_source=text&utm_medium=press-release&utm_content=want-to-work-towards-a-more-equitable-and-inclusive-economy?&utm_term=praxis-mutual-funds), a fund family of Everence®, we invest 1% of our managed assets to investments in Calvert Impact Capital, an impact-investing institution that helps people across the country and around the world.

## Closing thoughts

CDFIs have what it takes to address financial inclusion at scale despite their challenges. They have processes in place to mitigate risk and can deliver capital in a more cost-efficient way, making it a win-win for the investors and the borrowers. Investing in CDFIs can help move us closer to a more equitable and inclusive economy.

~~~~
Praxis Mutual Funds are advised by Everence Capital Management and distributed through Foreside Financial Services, LLC, member FINRA. Investment products offered are not FDIC insured, may lose value, and have no bank guarantee.
*Consider the fund’s investment objectives, risks, charges and expenses carefully before you invest. The fund’s prospectus and summary prospectus contain this and other information. Call 800-977-2947 or visit praxismutualfunds.com for a prospectus, which you should read carefully before you invest.*

Praxis Mutual Funds has a rich history as a leading faith-based family of mutual funds designed to help people integrate their finances with their values. With Praxis,your investments can make a difference for you, and the world around you.

Praxis Mutual Funds

Articles

Want to work towards a more equitable and inclusive economy?

We all want to align our faith with our investments, but are you only thinking of what to invest in or avoid? There are many ways you can make a real difference for the Kingdom and provide for your family. We’ll talk about that with Mark Regier today.
Mark Regier is Vice President of Stewardship Investing for Praxis Mutual Funds. He’s been working in the field of faith-based investing for over 25 years.
<ul><li>Romans 12:2, “Do not conform to the pattern of this world but be transformed by the renewing of your mind.” </li><li>Reiger says this is a powerful scripture because it can challenge us as Christians to be both humble and diligent, prudent and innovative, slow to anger, and committed to community. We should keep that verse in mind and see it as a challenge for how we approach the task of investing.</li><li>Reiger has worked in the field of faith-based investing for a long time. He says there are many reasons why it’s taken so long for people to recognize there are a lot of ways to make an impact for Kingdom values.</li><li>There is a long history of Christians reflecting their values only through screening out certain stocks, which has limited real impact. There’s also exciting, newer work being done through targeted—often private—investments seeking to build the kingdom, but they come with higher risks and limited access, often available only to high-net-worth investors. But today, a whole range of impact investing strategies are available to everyday investors that can make a meaningful difference in the world for Kingdom values.</li><li>At Praxis, they integrate seven different impact strategies into as many of our five mutual funds as possible. But Reiger says Impact Bonds can also be used for shareholder advocacy.</li><li>On this program, Rob West and Mark Reiger also explore what Impact Bonds are and how they can be used for kingdom purposes, as well as the definition and importance of shareholder advocacy and engagement.</li><li>For more information, visit <a href="https://www.praxismutualfunds.com/">PraxisMutualFunds.com</a>.</li></ul>On this program, Rob also answers listener questions: 
<ul><li>What is a single-life annuity? </li></ul>Remember, you can call in to ask your questions most days at (800) 525-7000 or email them to <a href="mailto:questions@moneywise.org">Questions@MoneyWise.org</a>. Also, visit our website at <a href="http://moneywise.org/">MoneyWise.org</a> where you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app.

Biblical Wisdom For Your Financial Journey

MoneyWise

MoneyWise is a daily radio ministry of MoneyWise Media. Hosted by Rob West and Steve Moore, the program offers a practical, biblical and good-natured approach to managing your time, talents and resources.

MoneyWise with Rob West

We all want to align our faith with our investments but are you only thinking of what to invest in or avoid? ﻿There are many ways you can make a real difference for the Kingdom and provide for your family. Rob talks about that with Mark Regier first.

Everyday Investments Make a Difference for Kingdom Values With Mark Regier

We all want to enjoy God’s blessings when we’re faithful, but we don’t always want to accept his correction when we fall short. Rob West encourages us to accept God's corrections.

The MoneyWise Minute is a great way to be reminded of God's financial principles with actionable items you can easily apply to your daily life.

MoneyWise Minute

We all want to enjoy God’s blessings when we’re faithful, but we don’t always want to accept his correction when we fall short. Rob West encourages us to accept God's corrections.

Accepting God’s Corrections

David Green

David Green, the CEO of Hobby Lobby, shares his deepest motivation for his business success.

Behind every great movement of God are generous leaders who partner with those who proclaim the gospel. We call them Gospel Patrons.

Gospel Patrons

He's one of America's wealthiest people, but that's not what the CEO of Hobby Lobby cares about most.

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Join a community of believers striving to be good and faithful stewards of the resources entrusted to them.

Integrate your faith with your finances

Learn

Manage

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Grow in wisdom & knowledge

Greed in the Bible

Want to work towards a more equitable and inclusive economy?

If I Had Another Billion Dollars

Accepting God’s Corrections

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Steward your finances wisely

MONEYWISE COMMUNITY

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