How Do You Score?

Just like in life, you also have a reputation with how you handle your finances. You actually get scored on how well you do.  Your goal is to keep it in the ‘excellent’ category….. 750 or better.

Everyone has bills….. rent/mortgage, utilities, loan payments, credit card purchases etc.  How well you do at paying them, whether you pay when/before due, or if you’re late (and how often), and if you pay in full or just the minimum.  And, it shows how much outstanding debt you have and how you’re taking care of paying it off.

All this is reported and goes on a ‘Report Card’ of sorts…. called….. Your Credit Score.  You score anywhere between 250 – 850.

Obviously, the higher your score, the better.  And your score can determine whether or if…. you can get a job, an apartment, a loan etc.  And it’s legal for prospective employers, landlords, lenders etc to check to see where you stand.  So…..

Get in the habit of living within a budget, of not buying what you don’t need.  And when you do buy something, know that when the bill comes in, you have the money set aside to pay for the whole amount before the due date.  Doing this assures you that you will have no late fee or finance charge on the outstanding portion.  And…… it keeps your Credit Score in excellent standing.

This is why a budget is imperative.  Checking on what income is received, and how you disperse it should become a habit.  Doing so will not only let you know where your hard earned money goes, but it will allow you to know what you’re saving, and for what purpose.  And, it will relieve stress at wondering and guessing.

Once you’re in the habit of doing this, you become disciplined at it…. It becomes second nature.

So, get started!