Changing our calendars to a fresh new year can cause us to reflect on what has transpired over the past twelve months. Many who do that resolve to initiate changes and renew a commitment or promise to themselves to do some things different. Along with people filling up the local gyms with a regenerated desire to get their bodies in shape, many take a look at their finances to consider ways they can improve their financial bottom line.
We are sometimes harshly judged by what is deemed as our “credit worthiness”. An individual’s personal credit profile is very influential and has become more important than ever before. It can be used as a large decision-making component in many areas of our life including, financing and the interest rates we pay, our ability to rent an apartment or house, and the insurance rates we are charged…
Credit has become more important than ever before. We are all judged by what people read about us on paper. Why should individuals care about what is on their credit report, and does it really matter?
Living with bad credit in America today is tough. Bad credit makes many things difficult, impossible, and even more expensive. For example, did you know insurance companies often charge a higher premium rate for policy holders that have bad credit scores? If you’re getting new utilities turned on in your name, the company will check your credit to decide whether you should pay a security deposit.
Before credit reports and scores existed, financial institutions had to guess whether someone was a good applicant (or risk) for taking out a loan. Credit reports and scores were “invented” to take the guess work out of it. The national average credit score is approximately 672 – – but how are credit scores calculated?
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