New Book – Chapter on Credit Scores – Part Five

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 …

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

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1 Comment

  1. Jose Paclibare│Christian Business on December 14, 2009 at 12:45 am

    Congratulations Joe for your new book “What Everyone Should Know About Money Before They Enter THE REAL WORLD”. I understand it’s aimed for the high school students, college students, and twenty-somethings. But I guess many adults who never had any solid financial education would benefit from your book too. Am impressed with the praises for your work.

    God bless.


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