Those are words that can strike paralyzing fear into the hearts of many. The thing is, that big bad FICO number really isn’t so scary. Yes, it has an impact on your life (some good and some bad), but it’s only a number that reflects the past. The best thing about it is… it can CHANGE. All it takes is attention and dedicated action over time.
You’d be surprised how many people have no idea what their credit score is OR how to find out. They know they’ve been through tough times in the past, and rather than face the reality of their situations, they… do nothing. They pretend like it doesn’t exist. What you don’t see can’t hurt you, right?
It’s what you DON’T pay attention to that can bring fears and worries to life, and in ways that have a real and tangible impact. A low credit score doesn’t only prevent you from being approved for a mortgage loan or credit card and/or make you pay higher interest rates. It can also affect other external factors. For example, did you know that your credit score has an impact on your auto insurance rates? Car insurance companies in most U.S. states look at your credit score to help determine the likelihood of an insurance claim in the future. It’s called an “insurance risk score,” and if your score is below 650, it may mean you pay more each month to balance the insurance company’s risk.
Your credit score can affect whether you can rent an apartment. It can even have an impact on whether you’re hired for a job. That’s right… some employers ask for your permission to check your credit. According to Experian, “Federal law allows potential and current employers to view a modified version of your credit report for employment purposes such as hiring and promoting.” For employers, your credit score can help them determine whether you are a responsible, stable addition to their team.
We realize that there are a lot of reasons some people may be struggling with credit. Some folks have paid their bills responsibly all of their adult lives, and then something happened that shook their world. Things like divorce, a job loss or large medical bills can make a credit score tank fast. Some have even had their identity stolen and watched as someone else ruined their good name. We get it. We’ve seen life situations smack a person into a financial black hole.
The thing is, that score… the BIG NUMBER, doesn’t always care how you got there.
That’s why it’s SO important to not hide from it, but work to FIX it. It takes some time, but it is absolutely possible to recover and raise your credit score to reflect your responsible practices of the past.
Make your credit score a part of your daily awareness. With some professional guidance, strategic payments and tenacious, dedicated work on your part, you’ll be back in the high scores again before you know it.
For more information about your credit score or how to recover from past blemishes, reach out to Leah today at 937-548-8222.