By definition, a credit score is a numerical expression based on a level analysis of a person’s credit files, to represent the creditworthiness of an individual. A credit score is primarily based on a credit report, information typically sourced from credit bureaus.
Credit Score Ranges
- 300-579: Poor.
- 580-669: Fair.
- 670-739: Good.
- 740-799: Very good.
- 800-850: Excellent.
The higher your credit score, the better. When going to a lender to borrow funds, your credit score tells them everything they need to know about you. It’s shows how well you pay or don’t pay your bills. It tells them how much others trust your word based of your previous financial behavior. Even when credit seems like a worthless score, it never is.
Believe or not, credit and knowledge can go hand and hand. Good credit can put you in a position that could potentially change your life. With good or excellent credit, lenders are happy to approve loans of many types. Getting the right loan and having a plan can set you up for the success you wish to be.
15 Reasons You Need to Fix Your Credit
- Save Money on Interest.
- Stop Paying High Security Deposits.
- Get a Lower Insurance Rate.
- Stop Paying Cash for Everything.
- Get a Higher Credit Limit.
- Stop Debt Collector Harassment.
- Feel Better About Your Credit Score.
- Buy a New House.
Your credit matters more than you think. Your financial portfolio can make or break the direction of your financial lifestyle. Interest rates can lower your monthly payments and overall fees when borrowing. Higher credit limits can reduce stress in unexpected events. Lower rates when you’re applying for insurance can go a long way. In essence, having great credit can put and keep some money in your pockets.
But it doesn’t stop with you. Kids need good credit too. In the black community, often times we don’t think about the effects of our children having bad credit. For some, parents use their children’s names to assure entertainment at home or certain bills. They eventually get in a rough situation and boom. The kid’s credit is effected just like that. We must learn how to set our kids up for success, not failure.
Ways to Improve Your Child’s Credit
- Start early
- Educate them on credit
- Help them save for a secured credit card
- Teach them how to track their spending
- Add them as an Authorized User if you have excellent credit
It’s never too late to get educated. It’s never too late to reinvent your financial strategies. It’s never too late to put yourself in a better position to win. Even if you’ve had bad credit your whole life, there’s so much help out here. It’s never too late to care. So fix that credit and live your best life.
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