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How Your Credit

Affects You

by Lynn Davies

We all have goals we want to We are in a debt-fueled economy. either to repay or return those
accomplish in life. The average household spends resources (or material(s) of equal
34.5 cents of every dollar to pay value) at a higher cost.
• Own a Home interest on their debts. (Source:
• Get Married Wall Street Journal). What credit is not?
• Vacation
• College What if you could stop overpaying • Utility bills
• Own a Nice Car interest on your debt? Would life • Phone bills
• Go on Vacations be different? Stop guessing: It’s • Daycare expenses
not too late to take a new course…
Our goals put us in debt. In With the only Financial GPS. What is a credit report? A record of
REALITY: This is how life takes an individual’s or company’s past
shape for most people. • Not a refinance borrowing and repaying, including
• Not a mortgage modification information about late payments
Our dreams and goals get replaced
by consumer debt and our cost • Not a debt roll-down and bankruptcy.
of living. We budget for the price • No lender change
tag of what we buy, but we fail • No change to lifestyle How does your credit report affect
to budget for the true COST. you?
The reality of how people’s lives This software program analyzes
get shaped financially is a little your financial situation. Let the • Financing
different from what their goals and software direct you to ZERO debt • Insurance
dreams are. in the shortest possible time using • Employment
your existing situation. Working • Higher interest rates
Assuming you choose to go to on your credit score will also will
college. You earn your degree and improve your life desires. How do credit scores work?
get your first job, getting paid a
modest starting salary. Most of What is credit? Credit is the • 760-850 Excellent
your income at that point is yours provision of resources by one • 700-759 Very Good
to spend. And, congratulations, party to another party where that • 660-660 Good
you are also the proud owner of second party does not reimburse • 620-659 Fair
tens of thousands of dollars in the first party immediately. • 580-619 Poor
student loans. Instead, the second party arranges • 500-579 Very Poor

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