How Did Your Credit Score Get So Bad?

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You didn’t do anything wrong, so why is the financial industry telling you that your credit score is lousy?

  • Why is the mortgage banker telling you that due to your credit score you are being denied a mortgage loan?
  • Why is the interest on your credit card statement more than your monthly payment and the credit card company tells you that this due to your  credit score?
  • Why is your insurance agent telling you that your premiums are high because of your credit score?

So many financial questions with only one answer, your financial habits.

Whether you want to believe it or not, your financial habits determine your credit score and then this financial score determines how much you pay for services rendered by businesses in the financial industry.   If you improve your score, you will have more control.

Take Control Of Your Credit Score

Do not feel discourage because you have “almost” complete control over your credit score.   You “almost” have complete control because you do not control all factors.  You do however control the major factors that make up your score.

Here’s What You Control|Your Financial Habits

  • Credit scoreHow much you spend.
  • How many credit cards you have.
  • Whether or not you make your payments on time.
  • How often you miss payments.

Your spending habits, missed payments, the number of credit cards and payment history are all factors that determine your credit rating.   You do control all those factors:

  • If you cannot pay it off on a monthly basis, don’t buy it.
  • If you cannot make your payment on time, set your account up on automatic payments.
  • You only need 1 maybe 2 credit cards; you do not need 4 or 5 credit cards.

Here’s What You Do Not Control|Financial Information

To a certain point you control the errors in your credit report since you have the authority to check your credit reports for errors. You can check your reports for errors by ordering a free credit report every year.

What you do not control is the accuracy of the information reported to the 3 national credit reporting agencies.   These agencies are not responsible for checking the accuracy of financial information they receive; they are only responsible for reporting it.   Therefore, you need to be responsible for checking the accuracy of the information received by the credit reporting agencies.

If you take control of your financial habits you will have control over how much you pay for goods and services.   You will improve your credit score by improving your financial habits.

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