A credit score is one of the most important aspects to personal finance. Lenders use these scores to estimate the amount of risk they take on when lending someone money. Low scores means that person hasn’t paid off debts or contracts well in the past. A high score means they’ve been making consistent and timely payments on their debt, just want lenders are looking for.
I wish I had started to build my credit years ago, but I was always scared. I was told repeatedly in high school and college that credit cards would be a devastating financial decision. In some cases they were right. I have multiple friends who opened up a couple credit cards and now, 8 years later and still bogged down by the same card’s debt. Once I finished college I knew I had to start building credit, so I went to my bank to open my first credit card.
I’ve been responsible over the last year or so and I’ve now secured a pretty good credit score. I just opened my second credit card to double up on my efforts. Having a good credit score is essential to one’s financial health. Have you had your fiscal update recently?