Why Your Credit Score Matters—At Any Age! - Cabot Wealth Network

Why Your Credit Score Matters—At Any Age!

Get details about the importance of your credit score, when you read the September 2021 issue of our Magazine, just released!

Cabot Money Magazine September 2021

It’s no secret; the economy is recovering very nicely from the coronavirus pandemic—as you can see in the GDP (Gross Domestic Product) graph below. And for the third quarter, GDP growth is forecast to reach even greater heights—a stunning 7%!

GDP

This strengthening has been a boon to both investors and consumers. As you know, the stock market, as evidenced by the S&P 500, has climbed 19% so far this year. Most investors have made money, and that pot of cash has helped fuel the current consumer spending binge, which grew 11.8% in the past month.

The downside is this: With the economic picture so bright, it’s easy to get ahead of ourselves and spend money we don’t really need to be spending.

Consequently, this is the perfect time to think about what shape you want your finances to be in when the good times inevitably end—which we know will happen with the next economic cycle. It’s smart to shore up your finances now, before that occurs.

And to find out just how good your financial condition is, you need to know your credit score.

You can’t turn on any television program without seeing an ad citing how easy it is to improve your credit score. In general, that’s just not true. Once your credit score has been damaged, repairing it can be much more complex than you might expect.

It’s actually pretty easy to damage your credit. When we’re young—unless our parents teach us about maintaining healthy credit relationships—we often do foolish things with our money. It’s not always due entirely to a laissez-faire attitude, but some fault must also be shared with the companies that bombard college students with easy-to-get credit cards. And that often turns into big trouble, leaving the students with a black mark on their credit report.

But bad credit decisions aren’t exclusive to the young. As we move toward our middle-age years, that same easy credit allows us to purchase a more expensive car that we can realistically afford or a house so expensive that we can’t furnish it, etc., etc.

Years ago, I used to manage a bank in Palm Beach County, Florida, in a very exclusive neighborhood. Many of the folks who parked their Ferraris in my lot also owned fantastic homes—on the outside. Not so much inside—their money was expended to buy the house, with little left over for furnishings. They were—literally—in over their heads, spending more than they earned to make an impression.

You get the picture.

Fortunately, these good economic times have helped a lot of folks get out of those kinds of tight credit situations. In fact, the Consumer Financial Protection Bureau reports that the average credit score in the U.S. stands at 710—an all-time high. That score is considered “good.” But it’s not “excellent.” And it’s the excellent score that you need to claim to get the best interest rates on your large purchases.

Read the feature article in this month’s magazine now to get everything about your credit score explained, including:

And when you read this article in the September 2021 issue of our Magazine, you get action-oriented advice about optimizing your credit score, including:

In this feature article in the September 2021 issue of our Magazine, you’ll learn all about the importance of your credit score. Read this article now, and get everything else in this issue of our magazine, too, including:

This latest issue of our Magazine is ready for you to access now, to discover why your credit score is so important… and much more. Read it now!

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