TAKE YOUR LIFE BACK: YOU ARE NOT YOUR CREDIT SCORE
One of the most stressful challenges in life is measuring up for the perfect credit score. For some, good credit is a far-fetched goal that will be an ongoing uphill battle. For others, it’s as easy as tying your shoe. But for most is a constant tug of war, keeping track, paying up, and remembering to borrow only just enough (you know the 30% of your available credit rule).
The point to remember is that your credit is just a financial barometer. It gives an indicator to let businesses know how much more debt they will grant you. It’s a front line observation. This does not mean that with bad credit you are penniless or completely irresponsible. It does however mean that you have some catching up to do.
Your credit score determines a lot such as your credit card limit, your choice of residence, access to a business loan or even the type of car you drive. What a credit score is NOT is an end-all be-all.
Try this perspective for size.
Our nation is one of the most powerful and progressive countries there is. Yet, we are in trillions of dollars in debt. We owe other countries including our own. Our currency is a façade as it is backed by very little natural resources. Meanwhile business continues as usual. We are still planning, confident for a bright future and operating as such. Don’t let your credit score stifle your creativity and positive attitude for life.
Author of the book Rich Dad Poor Dad, Robert Kiyosaki, once said in an Oprah interview, “Pay Yourself First”. Now this does not mean splurging on unnecessary trills to the point that you can’t keep a roof over your head. On the other hand, you don’t want to spend all your income paying off debt. Some things take time. Don’t stop enjoying life because you have a $75,000 school loan. This is where budgeting comes to play.
Ask these questions:
What is my true monthly income?
What are my goals?
What needs to be paid right now?
What outstanding debt can wait? Until when?
Forget your credit score for a minute. Know what your goals are in life. Set them high. Think of your credit score as a gauge for good financial planning. Your credit score is not your ball and chain. It can often feel like it but let’s remember it is a work in progress. It is a point on a scale that can be changed—moved up or down. And regardless to what your score is, it slightly changes all the time anyway.
Find your way to financial freedom, but don’t let your finances consume you.