"How do I build my credit?"
This is one of the most common questions I am asked. In this series, I will be sharing various ways that one can build credit while still winning with money.
Part Four – Understand Why Credit Scores Are Necessary
What is the number one reason why someone would want a great credit score?
To obtain more debt!
Think about it! I am not a fan of debt at all. It robs people of peace and places tremendous strain on relationships.
What exactly is debt anyway?
Debt is nothing more than pledging tomorrow's income to someone else.
If one has zero debt, then they will have no credit score. They could have $10,000,000 in the bank, but have a zero credit score.
A credit score does have an impact on other areas of life, however. It can affect insurance premiums, deposits required for utility hook-ups, and approval to rent real estate. It can also impact one's ability to be hired! Military personnel have been denied or lost security clearances due to their credit.
So read the entire series, work on building a decent credit score, and do it all with a written spending plan!