I haven’t looked at my credit score in over three years. Am I in the wrong? Maybe. So many people today make decisions in life that is purely based on how it will affect their credit score. It’s almost as if it’s the new Bible! If their action might affect their credit score negatively, they’ll steer clear from it. If, however, their action (like buying furniture on credit) will improve their score, they’ll consider themselves responsible. I have a friend that has amazing credit because he always has payments on something, but never misses one. He’s also broke as a joke too, with no possession that he can truly call his.
So why do people place such a high emphasis on their credit score? Let’s take a look at a few reasons:
Why Do People Care About Their Credit?
- Enables them to borrow money from the bank to buy a car
- Borrow for furniture
- Borrow for recreational toys (boats, quads, etc.)
- Allows them to pay low rates on their debt
- Borrow for a house purchase
- Your credit might be reviewed for a potential job you applied for
- Low credit card rate with a higher maximum
- Borrow for school loans
- Borrow for home improvement loans
The list could really go on and on. Do you know which of the reasons I care about? None of them… I already have a house and my job is rock solid at the moment. The rest of the reasons I certainly don’t care about because they’ll just make me more broke. Making payments on cars, furniture, and boats is just not smart. You end up paying more than the sticker price (because of interest) and you reduce your cash flow each month, which restricts you from making wise investments (because you don’t have as much extra money at the end of the month).
Now, just because I don’t care enough about my credit to look at it doesn’t mean that I want to hurt my credit score. I still pay all of my bills on time and am a generally responsible person when it comes to money, as should you be. When is the last time that you looked at your credit score? Why do you care?
There have been some great articles on this site this past week, but to be fair there have also been some solid articles on other sites as well. Here are some that I read and thought you might enjoy:
A List of Career Moves to Blow Up Your Future at Financial Samurai
Your Career is Going Nowhere, What Can You Do at KrantCents
Why You Need to Enjoy Your Job at 20’s Finances
A Beginners Guide to Investing at Debt RoundUp
7 Reasons Everyone Should Reach Financial Independence at My Financial Independence Journey
Optimize Your Cell Phone Plan at My Money Blog
6 Tips to Make Your Financial Dreams a Reality at Small Budget Big Dreams
Easy Ways to Save With Amazon Subscribe and Save at Narrow Bridge Finance
Five Similarities with Weight and Debt Loss at Johnny Moneyseed
Top 10 Emotional Money Lessons to Improve Your Finances at Modest Money
Does Passion Matter? How to Find Your Dream Job at a YoungPro
What are Your Best Time Management Tips at Mom’s Plans
Early Retirement in the US vs Abroad at Reach Financial Independence
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.