Credit scores are seen as both a blessing and a frustration for many people. While it is an important part of one’s financial life, we do not always understand such scores in the way they should be understood. In fact, less than 10% of the people who think they understand credit scores actually do. Like any other important decision, your credit score can either improve your finances and quality of living or it can cause major damage, causing you not to be able to obtain some of the good things you want and need, including owning a home, upgrading to a new vehicle, getting a credit line for a new business, or even obtaining a basic credit card.
The three digits that make up your credit score are depended on almost every decision you make and how you manage such decisions on a long-term basis. Think of your credit report as a school report. The scores you obtain all throughout school will be one of the primary deciding factors in whether you get into a good school or the school of your dreams. The same is true of a credit score. The scores you obtain throughout your financial decisions help banks, credit card companies, insurance companies, landlords, and even some employers to make a decision on whether they can trust your financial judgment which determines your creditworthiness.
If you think understanding credit scores is hard, think again. This whitepaper will give you reasons you should care about your credit score, explain what a credit score and credit report are, show you how to check your credit score, and offer tips on how to build and maintain a good credit score. Like anything worthwhile in life, build credit takes time and patience must underlie the effort. The ideas contained in this whitepaper will be very beneficial to your financial well-being.