Start Taking Your Credit Score for What it is— It is Everything, But it Could also Mean Nothing

Good credit is a booster for many financial setbacks. But having bad credit does not tag anyone as “bad.” Plus, there are ways to improve your score. And that’s a chance you don’t want to miss because your credit score impacts nearly every significant financial aspect in your life.

 

What your score means

Yes, good credit means everything. But bad credit does is no sign you are a bad borrower. Even the firms that issue credit scores know that.

“The credit score isn’t a reflection of who you are as an individual or how much you’ve achieved,” says Jeff Richardson, an expert at VantageScore, a credit scoring scale. “It is not passing any judgment.”

Do not even let the fact that the unwise financial decisions you made led to that poor score put you down. Perhaps the best way to handle credit score issues is to stop linking it with your self-worth.

 

Know where you stand

Don’t be reluctant to check up your current credit score before you decide on a way forward. For so long we’ve linked good credit to success and bad credit to failure. But this should stop because “You don’t need perfect credit to be a successful person.” Several apps and sites give free scores. You can also make use of a bad credit merchant account.

Most young people looking to start building credit or repair a poor score should target scores between 620 and 640, says Richardson. Any score around that region keeps you out of the bad-credit list.  But you can always improve, even to 720 to enjoy the best deals.

 

Pay attention to what matters

Begin paying bills in good time and keep your credit card balances as low as possible. Repeat month after month, and your credit score will definitely go up.

But you can use faster ways and have a better score within a very short span. For example;

• Putting one recurrent bill on autopay.
• Using a secured credit card with a little deposit and adding to it one regular purchase with the intention of settling it each month.
• Getting a free credit report at annualcreditreport.com and going through all personal and account info.

The bottom line

Desirable credit puts you in a safe spot, gives you a variety of options and saves you money. But having bad credit does not mean the exact opposite. Start taking your credit score for what it is and don’t let the fear of poor credit stop you from living a happy financial life.

Author Bio: As an account executive, Michael Hollis has funded millions by using alternative funding solutions. His experience and extensive knowledge of the industry has made him a bad credit merchant account expert at First American Merchant.