Tens of millions of Americans live their normal, everyday lives totally oblivious to their credit score, and the positive or negative consequences it can have on their financial future. According to the credit bureau Experian, over one third of Americans had a credit score under 600 in 2016 which is the number that indicates bad credit. Bad credit can be caused by poor financial decisions, unexpected expenses/emergencies or more likely, the lack of knowledge of the complicated process of managing a credit score. Millions of people have never even checked their credit reports even though it affects their daily financial life.
Although managing your credit can be a challenging process to handle yourself the consequences of ignoring it can be devastating financially. Poor credit can keep you from buying the new car you need, the dream home you’ve always wanted, or even the loan you need to take out to put your child through college.
Now even if you are lucky enough to be approved for your loan, car, or home with bad credit your credit score will still affect the interest rates that you will be forced to pay back. This difference is only a mere percentage point or two, but when you are dealing with six to seven figure costs, the difference will be in the tens of thousands.
This could be the difference in paying an extra $200 dollars a month on your mortgage for the next 40 years of your life!
Your credit can also have side effects that affect your everyday life as well. Having bad credit carries certain stigmas and stereotypes with you. For example, someone with bad credit will have a tougher time finding work, higher credit card fees, and higher car insurance rates. This is due to companies generalizing those with bad credit; if you mishandle your own money who is to say you won’t be a reckless driver or careless worker.
Unless you are someone who always carries cash on them credit cards will cost you extra, too. Credit card companies will charge those with good credit significantly less on interest rates. Having bad credit could cost paying an extra five percent on everything you put on your card. Credit is even effecting your weekly trip to buy groceries.
Because credit is essential in the process of major life choices like going to college, using a credit card, and buying a car or home, having bad credit will certainly cost you hundreds of thousands of dollars over the course of your life. The gap between living comfortably or constantly in debt can revolve around having good credit or not.
I invite you to clink on the link below to discover the way that FES can get you to financial freedom to enjoy the premiums of life with good a good credit score!
To Your Financial Future,