Get Real About Credit: What’s Your Number?

Credit

 

It’s 2018 and it’s [about] time to get real about my relationship with money, this is my year to be diligent about finances. You can say, I’m finally conquering adulting. To be honest, I haven’t checked my credit score in a while, but now that I’m married and building a future with my husband– this three digit number is much more than just a number.

So how important is your credit score?

From purchasing a house to leasing a car, to rates on a loan or a credit card, credit scores ​are used by lenders to determine whether you can borrow their money, and what interest rate you will pay. The three-digit scores are created by applying a mathematical formula to information compiled by the three major credit bureaus.

Now that my husband and I are settling into married life – here comes the next big I do. I do want to purchase a home with you, I do want to open a joint credit card with you, I do want to share a mortgage with you… I do want to put my name on your lease… and that’s just the beginning. Sounds great, but there’s a lot to consider and ​a poor credit score can get your loan application with higher interest rate or either denied altogether.

The first step is checking where I stand and how that affects us. With Turbo, it’s easy to get your free instant credit score, so don’t wait – check it today!

Let’s not pretend ourselves, credit is something we all know exists, but (I will be the first to admit we are afraid to admit) we don’t really “get”, like modern art and roundabouts.

Here’s a scary stat: ​Only 12% of millennials feel very prepared for their financial future – and the number is even lower for millennial women (10%).

Additionally, with 8 in 10 Millennials are carrying debt, less than half of them feel like they make enough to pay for bills ​and​ save for their future.

Your number could be 2 or 1000 and it might mean nothing to you. Even worse, sometimes we’re so afraid of it – we don’t build any credit! Did you know that could be worse? Lenders are less likely to give you a loan when you have little to no credit. It’s like buying the item on Amazon with little to no reviews, it’s just risky business.

A score of 750 to 850 is considered “excellent”; a score of 700 to 749 is considered “good”; a score of 650 to 699 is “fair”, and a score of 300 to 649 is “poor.” Scores range from 300 to 850 based on major scoring systems FICO and VantageScore.

What’s killing your credit?

Late payments, constantly opening new accounts and having a balance on your credit card that’s too close to the limit. Make sure you’re on time with your payments, hello autopay! We’re all ready for out with the old and in with the new but in this case, it’s the opposite. Older accounts is a longer time to build a relationship and lenders love that!

Here’s the one most people don’t know – do you?

If your credit limit is $5000 how much should your balance be? *Que Jeopardy song* Ready for the answer? Less than 30%. That means you’ll want your balance under $1,500! (credit https://www.learnvest.com/knowledge-center/credit-scores-101)

It took my husband asking me “what’s your credit score?” to make me even think to look! I might be an entrepreneur, but I’m not perfect. As a woman, I feel it’s my duty to understand just how my credit score works and all the ways it can affect me and my husband, especially when it came to home shopping.

The big reveal

I used Turbo to check my credit score, which will affect the interest rate on our mortgage. Good credit can mean significantly lower monthly payments. So I know if my score isn’t great, I would have some time to improve it before home shopping.

Using Turbo means getting a visual representation from red to green and understanding the whys behind your numbers. The app gives you the hard to understand info with the easy breakdown follow up. It’s the chaser you need to take the credit report in.

Here’s what the app does:

Turbo not only shows you your credit score, but how it got there, why, and when. Additionally, it gives you the tips you need to start working on your credit and by the end – there will be nothing left to be afraid of. The power will literally be in your hands.

It’s always a good idea to review your credit reports and scores periodically, even if you’re years away from shopping for a home and a mortgage. If you’re planning to buy a home this year, it’s a good idea to check your credit score to see where you stand.

The only thing I have left, is buying a house. That’s easy, right?

Do you know the three key numbers that matter to your financial health? Download Turbo​ to get the financial freedom you deserve.

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