Find Money By Managing Your Credit Score
The common discouragement among investors trying to save for retirement is not having enough money to do it all. In tough times people cannot find enough money to cover their living expense plus invest in their retirement plans. If that scenario is all too familiar you may be interested to know that you have more control over your retirement investing than you think.
Seize Control Of Your Credit Score
The secret to having enough money to do it all is very simple; take control of your credit score. A poor credit score does not just happen to you; you played a role in getting it there. If you manage your credit score properly you will have plenty of extra money to invest in your retirement plans.
What Is Your Credit Score?
A Score Card
Your credit score is a record of your financial actions. It keeps track of your late pays, missed payments, opened accounts, closed accounts, open loans, even identity theft. You determine what your credit score is.
The 3 digits that represent your credit score is a snap shot used by lenders to assess you. They use your score to determine if they can trust you with their money. Financial institutions frown upon too much debt and bad payment histories; it’s a signal to them that you may be a risk.
How Does A Credit Score Affect Retirement Planning?
Everything you buy will cost more money if you have a bad credit score. The result is that you will have less money to invest in your retirement accounts. You could be wasting money on loan interest, insurance premiums and even utility payments if you have a bad credit score.
More and more employers are using credit reports as an evaluation measure. To save for retirement you have to be employed. Having a poor credit score when you are job hunting may be a big disadvantage.
What Can You Do?
Monitor Your Credit Score
The best way to know your credit score is to check your credit reports once a year. If you have been a victim of identity theft do it more often. Credit agencies just record the information they receive, they do not check that information so errors can occur. Make yourself aware by making it a priority to monitor your credit score regularly.
A good credit score is attainable with some effort on your part. You only get so many years to work and save. If you waste money paying more for everything you buy you may have to extend your working years. Is that what you want? Or would you rather shorten your working life by taking actions that help you save money.