How Your Credit Score Impacts Your Financial Future | Tanvii.com - Indian Fashion, Lifestyle and Travel Blog

How Your Credit Score Impacts Your Financial Future

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Thank you CreditRepair.com for sponsoring this post. CreditRepair.com’s team understands that a credit score is not just a number; it's a lifestyle.

You know you are 'old' when you have to start worrying about your credit score versus your grades. Yup, your credit score is how society grades you on how well you are performing in life. I am kidding, but only partially. When I moved to the U.S. is when I realized I needed a 'credit score' in order to qualify for most big financial purchases. Now, if you know me, you know I am an overachiever. If you tell me 100 is the most I can score on a test, I am gonna still try and get that extra credit. (Yes, I am Indian.) But jokes aside, once I educated myself about credit scores and how they are calculated, I became vigilant in maintaining an excellent credit score.

I believe one should know about this from early on so that you can build a good credit score right from the beginning. So let's start with the basics.

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- What is a credit score?

A lot of people do not know about the credit scoring system—much less their credit score—until they attempt to buy a home, take out a loan to start a business or make a major purchase. A credit score is usually a three-digit number that lenders use to help them decide whether you get a mortgage, a credit card or some other line of credit, and the interest rate you are charged for this credit. The score is a picture of you as a credit risk to the lender at the time of your application.

Scores range from approximately 300 to 850. When it comes to locking in an interest rate, the higher your score, the better the terms of credit you are likely to receive.

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- What Helps and Hurts a Credit Score

Payment History details your track record of paying back your debts on time. This encompasses your payments on credit cards, retail accounts, installment loans (such as an automobile or student loans), finance company accounts and mortgages. Public records and reports detailing such items as bankruptcies, foreclosures, suits, liens, judgments, and wage attachments are also considered. A history of prompt payments of at least the minimum amount due helps your score. Late or missed payments hurt your score.

Amounts Owed or Credit Utilization reveals how deeply in debt you are and contributes to determining if you can handle what you owe. If you have high outstanding balances or are nearly "maxed out" on your credit cards, your credit score will be negatively affected.

Length of Credit History refers to how long you have had and used credit. The longer your history of responsible credit management, the better your score will be because lenders have a better opportunity to see your repayment pattern. If you have paid on time, every time, then you will look particularly good in this area.

Type of Credit considers the various types of credit you have and whether you use that credit appropriately (e.g, credit cards, retail accounts, installment loans, finance company accounts, and mortgage loans).

New Credit (Inquiries) suggests that you have or are about to take on more debt. Opening many credit accounts in a short amount of time can be riskier, especially for people who do not have a long-established credit history. Each time you apply for a new line of credit, that application counts as an inquiry or a "hard" hit. When you rate shop for a mortgage or a car loan, there may be multiple inquiries. However, because you are looking for only one loan, inquiries of this sort in any 14-day period count as a single hard hit. By contrast, applying for numerous credit cards in a short period of time will count as multiple hard hits and potentially lower your score. "Soft" hits—including your personal request for your credit report, requests from lenders to make you "pre-approved" credit offers and those coming from employers -will not affect your score.



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- How CreditRepair.com can help

However, what if you do not have a good credit score to start with, for one reason or the other? That's where CreditRepair.com comes in. Their name is 100% literal. You can call them for a FREE Credit Analysis. They help people repair their credit by removing negative items. CreditRepair.com is a leading provider of credit report repair services in the United States. They are a team of credit professionals who educate and empower individuals to achieve the credit scores they deserve.

It is fair to be skeptical and do your due diligence. You can check the reviews and their website. CreditRepair.com’s technology provides members with a personal online dashboard, a credit score tracker and analysis, creditor and bureau interactions, text and email alerts, mobile apps and credit monitoring.

What you need to know is that your credit score is not written in stone and that you are more than a credit score. But your credit won’t fix itself. Get help from 
CreditRepair.com today with a free consultation and kickstart your credit repair efforts.

Better Credit. Better Life.

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34 comments

  1. This is such a great, insightful post! Thanks so much for sharing!

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  2. its embarassing how excited I get when my credit score goes up, haha! Adulting for sure.

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  3. This is such a helpful post. Thanks.

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  4. This is HUGE! I am definitely the type to check my credit score and make sure it stays as high as possible. This post is so insightful.

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  5. This is such a helpful post! Credit scores definitely feel very adult and it's easy to not be bothered about it, but it really is so important for your future!

    xx Mollie

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  6. Here are the topics that are important to talk about and that are useful to read. Thanks.

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  7. This is such a useful post for someone who is trying to build up their credit score. I remembered when I just started working and before I had started with any credit card experience, I could not get to sign a mobile phone contract because there is no record of my credit score.

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  8. These are such important tips and so useful!! You need to go on your and talk to young folks... we’ll really all folks about this! So valuable

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  9. What a great post! I love posts that are actually useful and helpful! Great tips!

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  10. This is important info I think a lot of people ignore. I pay off my credit card every month.

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  11. it is very useful post. I managed to rarely use credits in my life but it leaves in not perfect state: very little credit history is not good as well. your post is very useful to me too

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  12. Having a good credit score is so important and so glad that creditrepair is able to provide that to its clients

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  13. When your young you don't really care about your credit score that much. And then you'll find out that it is very important because your are getting a loan from the bank. This is what happened to me, I wish read your article sooner.

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  14. I remember when I first got a credit card at 19 years old, and I maxed it out immediately. It took me several years to pay it off, and in that time, my credit score plummeted. It was so confusing to me why my score mattered, but when I began to learn more about it, I immediately took action to improve it. Now I have a great credit score, which has taken a while to achieve and I'm going to work hard for it to remain that way!

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  15. Luckily I had decent credit when I needed it (buying a new house, etc.) but I'm sure my credit was horrible in my early/mid 20s. This is always a great lesson to reinforce!

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  16. Such an incredible and informative post for anyone to read! These tips are all so helpful xoxo sarah

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  17. Such a great insightful post! I am SUPER OCD about my credit score and very protective of it.

    xo Laura Leigh
    www.louellareese.com

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  18. This is SO important! I wish someone would have told me more about this when I was a teenager!

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  19. I learned from my parent's misfortune how important good credit is! This is such an informative post.

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  20. This is so useful! I used to never understand credit scores and the importance of them until I tried to get my first apartment with no credit at all lol. Needless to say I've come a LONG way but I could definitely use this post and this service as help! Xx.

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  21. Thanks for the advice. What a helpful post. It's so important to be aware of your financial future to make sure you're taken care of.

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  22. This is very helpful and informative. I agree a lot of people are not aware of credit score. Good thing I pay on time and my credit score is excellent. Thanks for sharing!

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  23. Absolutely correct...better credit, better life. It's so important to keep that in mind especially when you are young. I know so many young people who think they don't have to 'start' worry about their credit until they are a certain age. Great info here!

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  24. Kristine Nicole AlessandraOctober 16, 2019 at 8:13 PM

    This is something we are very vigilant about - keeping watch on our credit score. My husband is the one who takes care of our financial health. So far so good. My kids have learned a lot from him too, now that they are adults and handling their own finances.

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  25. Very informative and helpful post. Having a good or bad credit score really affects you in the future, so better to take care of it and keep it good as much as possible.

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  26. I am so protective of my credit score because I would love to buy a home soon. Thanks for all these tips. I surely found it useful.

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  27. Very valuable and informative. When we are young we commit many mistakes, I know, I made them. Everyone should read this.

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  28. And here I am with no credit card 🤣 Well, my husband's credit score is great so kinda relaxed! Thanks for the tips ☺

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  29. This seems to be a great tool. Anything that helps improve credit score is good to know about.

    Xx, Nailil
    thirtyminusone.com

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  30. This is helpful for sure) I love reading your articles. One is for enjoyment, the other for self-education, and many for beauty tricks))))

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  31. This is such a great post that is so needed! Credit scores are so important and if you’re uninformed you can mess it up faster than you can repair it. Xo

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  32. This is a topic I wish I knew more about growing up!

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  33. I honestly wish I had known about credit scores and the impact of it before I graduated high school. This is something that people need to know before they jump into the adult world for sure. Thank you for this!

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  34. I didn't know the length of you credit had an impact. Really enjoyed this post!

    -Morgan
    How 2 Wear It [] http://how2wearit.com

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