I am EXCITED and PUMPED about my new book for high school students, college students, and twenty-somethings – What Everyone Should Know About Money Before They Enter THE REAL WORLD.
To celebrate the release of this book, I am sharing one of the chapters of this book (see all of the chapter titles HERE)
Here is another section of the “Credit Scores” chapter:
Everyone Should Know â€¦
A credit score is a debt management score, not a measure of your financial health.
Review the items that comprise a FICO score. Did you notice that it does not include items such as:
- The amount of money in a savings/checking or retirement account?
- The amount of equity in a home?
- Paid-for items that have value (car, house, expensive jewelry, etc.)
A FICO credit score only looks at debt. One could literally have $1 million in the bank and have a credit score of ZERO because they have not used debt for a long period of time.
There are people who define themselves by their credit score. My credit score is 801, they boast. I have seen many people who have extremely high credit scores who are absolutely broke. They have a high credit score because they have managed their debt well, not because they have managed their money well!
There are many people who have purchased a brand new car using debt when they could have paid cash for a nice used car. They bought the new car solely to boost their credit score. It might improve their credit score, but it hurts them where it really counts – the bank account!
Read the entire series HERE
Learn more about the book and RESERVE YOUR COPY (ships 12/15!) at its dedicated website HERE