Published by Annah Tucker, Director of Operations
We have all been taught that you need credit in order to obtain goods or services, based on the trust that payment will be made in the future.
However, I do not believe we have all been taught the skills to create good credit, and the spectrum of what having good credit can help you reach.
Yes, we all know we need good credit to qualify for a good interest rate on a credit card, or in order to buy a car or a home. But what about finding a new job and the impact your credit may have on the chances of landing that dream job?
Employers are more and more using background and credit checks to screen potential new employees. Financial responsibility and the personal integrity required to pay these obligations as promised has an overall impact on how an employer views your work potential.
But why is good credit so important? You can pay off debt faster with a lower interest rate, afford better housing, land that dream job, lower your monthly bills, and you can also start saving more now to ensure a better retirement later in life, just to name a few.
A large portion of our daily life revolves around the number that reflects your credit risk level. How we decide to leverage that is all a personal decision. Furthermore, we are all human, and if you have made some bad decisions in the past there is always time to put an action plan together and turn things around. IT’S NEVER TOO LATE and starting today is better than not starting at all.
First, sign up for Credit Karma or another credit monitoring service. Check your score and keep yourself accountable.
Next, put a list together of all your debts in order from least to most owed and begin paying the most you can on the smallest debt to pay off first. Then once that is one is paid off, roll that payment into the next debt on the list.
Dave Ramsey calls this the “Debt Snowball Effect” and if you haven’t already taken his Financial Peace University course I do suggest doing so.
We all have a responsibility to be financially dependable. If you or someone you know is managing their finances unchaperoned, help educate them on the importance of this subject. Here at Wise Counsel Wealth Management, we are always available to help in any way we can.