![\"Your](\"http:\/\/www.cultofmoney.com\/wp-content\/uploads\/2012\/01\/creditReport-card.jpg\" "\\"creditReport-card\\"")
<\/a>Why Your Credit Rating Matters<\/strong><\/h2>\n\n- Credit Cards<\/strong> \u2013 This is the most obvious, the rate you\u2019ll be charged on your credit card.\u00a0 However, you really shouldn\u2019t be carrying a balance, so with credit cards, your score will affect whether or not you can get those great reward credit cards and their sign-up bonuses.\u00a0 This could cost you hundreds of dollars in benefits.<\/li>\n
- Any possibility of getting personal loans<\/strong> \u2013 Banks won\u2019t give you a personal loan without great credit.\u00a0 You could always hit up a payday loan place (or better yet Prosper), but you\u2019ll still pay hundreds or thousands of dollars more in interest than someone with great credit.<\/li>\n
- Whether you get that sweet deal on a great rental<\/strong> \u2013 Many landlords and rental services will pull your credit.\u00a0 Depending on your credit, you may be asked to put up additional deposits, charged a higher rent, or not offered a rental at all.\u00a0 This can cost you thousands of dollars more than someone with great credit scores.<\/li>\n
- Student Loans<\/strong> \u2013 With the cost of education being so high, a small change in rates can have huge effects.\u00a0 The average student loan debt<\/a> was greater than $39,000 for graduates in 2021.\u00a0 For private schools, this amount is likely even higher.\u00a0 Over a 10 year repayment, a bad credit score could cost you thousands of dollars in extra interest, for something that you already received. Check out this student loan refinancing comparison<\/a> and see why your credit score can make a big difference.<\/li>\n
- Your mortgage rate<\/strong> \u2013 The difference between prime and subprime credit could be worth several percentage points on your mortgage, or recently whether or not you can even qualify to get a mortgage.\u00a0 The difference 4% and 6% on a $250,000 loan over 30 years is almost $110,000.\u00a0 Here is where your credit score could cost you hundreds of thousands of dollars.<\/li>\n
- Your job, the hiring process and any required security clearance<\/strong> \u2013 More and more employers are pulling credit reports to see how responsible you are.\u00a0 Why would they trust someone with company resources when they don\u2019t even take care of their own responsibilities?\u00a0 Missing out on a great job could make your life miserable, plus you could potentially cost yourself hundreds of thousands of dollars over the course of your career.<\/li>\n<\/ul>\n
Intelligent use of leverage is a great way to increase your wealth and standard of living.\u00a0 However the key to leverage is to make sure that it works for you and not against you.\u00a0 Credit provided in all the above examples can be either beneficial or detrimental to your life.<\/p>\n
What Goes Into Your Credit Score?<\/strong><\/h2>\n\n- 35% affects Payment History<\/li>\n
- 30% affects Utilization<\/li>\n
- 15% affects Established History<\/li>\n
- 10% affects Inquiries<\/li>\n
- 10% affects Mix of Credit<\/li>\n<\/ul>\n
So looking at the components of your credit score, the most important things to remember are that you don\u2019t want any late payments, bankruptcies, liens, or collections, and you ideally won\u2019t be using most of your available balance (credit limit on credit cards) and you\u2019ll have a number of different lines of credit open for as long as you can.<\/p>\n
FICO released data indicating how different credit events on a mortgage affected the credit score.<\/p>\n![\"Impacts](\"http:\/\/www.cultofmoney.com\/wp-content\/uploads\/2012\/01\/CreditScores_CreditImpacts.jpg\" "\\"CreditScores_CreditImpacts\\"")
<\/a>Credit Impacts<\/strong><\/figcaption><\/figure>\nAs you can see, the credit points lost is greater for the higher credit rated consumer.\u00a0 Another way to look at this is that you wind up at the same credit score for a given event, regardless of where you started.<\/p>\n![\"Time](\"http:\/\/www.cultofmoney.com\/wp-content\/uploads\/2012\/01\/CreditScores_CreditReturns.jpg\" "\\"CreditScores_CreditReturns\\"")
<\/a>Time For Credit to Recover<\/strong><\/figcaption><\/figure>\nLike climbing a mountain one step at a time, it takes much longer to get back to a high credit score after one of these events than it takes to get to a lower level credit score.\u00a0 Looking back at the impact table, you can see little difference between the 30 days late and 90 days late.\u00a0 Check to learn how I save money for an emergency fund<\/a>.<\/p>\nHow To Track Your Credit Rating<\/h2>\n
If you’re looking for a free way to track your credit rating, we recommend using Credit Karma<\/a>. This free tool allows you to pull up your credit reports, and gives you a great estimate of your credit score. It also gives you tools and resources to help boost your credit score. Check out Credit Karma here<\/a>.<\/p>\nThe moral the story is don\u2019t be even a little late paying your bills, the impact is huge.\u00a0 Readers, have you had credit score impacts due to a single missed payment or error?\u00a0 What were the effects?<\/p>\n","protected":false},"excerpt":{"rendered":"
So many things are based on your credit rating today. The difference between having a high credit rating can cost or save you thousands of dollars.<\/p>\n","protected":false},"author":1,"featured_media":122,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[36],"tags":[33,37,38,32],"acf":[],"_links":{"self":[{"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/posts\/121"}],"collection":[{"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/comments?post=121"}],"version-history":[{"count":-1,"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/posts\/121\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/media\/122"}],"wp:attachment":[{"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/media?parent=121"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/categories?post=121"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/tags?post=121"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Intelligent use of leverage is a great way to increase your wealth and standard of living.\u00a0 However the key to leverage is to make sure that it works for you and not against you.\u00a0 Credit provided in all the above examples can be either beneficial or detrimental to your life.<\/p>\n
What Goes Into Your Credit Score?<\/strong><\/h2>\n\n- 35% affects Payment History<\/li>\n
- 30% affects Utilization<\/li>\n
- 15% affects Established History<\/li>\n
- 10% affects Inquiries<\/li>\n
- 10% affects Mix of Credit<\/li>\n<\/ul>\n
So looking at the components of your credit score, the most important things to remember are that you don\u2019t want any late payments, bankruptcies, liens, or collections, and you ideally won\u2019t be using most of your available balance (credit limit on credit cards) and you\u2019ll have a number of different lines of credit open for as long as you can.<\/p>\n
FICO released data indicating how different credit events on a mortgage affected the credit score.<\/p>\n<\/a>Credit Impacts<\/strong><\/figcaption><\/figure>\nAs you can see, the credit points lost is greater for the higher credit rated consumer.\u00a0 Another way to look at this is that you wind up at the same credit score for a given event, regardless of where you started.<\/p>\n<\/a>Time For Credit to Recover<\/strong><\/figcaption><\/figure>\nLike climbing a mountain one step at a time, it takes much longer to get back to a high credit score after one of these events than it takes to get to a lower level credit score.\u00a0 Looking back at the impact table, you can see little difference between the 30 days late and 90 days late.\u00a0 Check to learn how I save money for an emergency fund<\/a>.<\/p>\nHow To Track Your Credit Rating<\/h2>\n
If you’re looking for a free way to track your credit rating, we recommend using Credit Karma<\/a>. This free tool allows you to pull up your credit reports, and gives you a great estimate of your credit score. It also gives you tools and resources to help boost your credit score. Check out Credit Karma here<\/a>.<\/p>\nThe moral the story is don\u2019t be even a little late paying your bills, the impact is huge.\u00a0 Readers, have you had credit score impacts due to a single missed payment or error?\u00a0 What were the effects?<\/p>\n","protected":false},"excerpt":{"rendered":"
So many things are based on your credit rating today. The difference between having a high credit rating can cost or save you thousands of dollars.<\/p>\n","protected":false},"author":1,"featured_media":122,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[36],"tags":[33,37,38,32],"acf":[],"_links":{"self":[{"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/posts\/121"}],"collection":[{"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/comments?post=121"}],"version-history":[{"count":-1,"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/posts\/121\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/media\/122"}],"wp:attachment":[{"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/media?parent=121"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/categories?post=121"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/tags?post=121"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
So looking at the components of your credit score, the most important things to remember are that you don\u2019t want any late payments, bankruptcies, liens, or collections, and you ideally won\u2019t be using most of your available balance (credit limit on credit cards) and you\u2019ll have a number of different lines of credit open for as long as you can.<\/p>\n
FICO released data indicating how different credit events on a mortgage affected the credit score.<\/p>\n As you can see, the credit points lost is greater for the higher credit rated consumer.\u00a0 Another way to look at this is that you wind up at the same credit score for a given event, regardless of where you started.<\/p>\n Like climbing a mountain one step at a time, it takes much longer to get back to a high credit score after one of these events than it takes to get to a lower level credit score.\u00a0 Looking back at the impact table, you can see little difference between the 30 days late and 90 days late.\u00a0 Check to learn how I save money for an emergency fund<\/a>.<\/p>\n If you’re looking for a free way to track your credit rating, we recommend using Credit Karma<\/a>. This free tool allows you to pull up your credit reports, and gives you a great estimate of your credit score. It also gives you tools and resources to help boost your credit score. Check out Credit Karma here<\/a>.<\/p>\n The moral the story is don\u2019t be even a little late paying your bills, the impact is huge.\u00a0 Readers, have you had credit score impacts due to a single missed payment or error?\u00a0 What were the effects?<\/p>\n","protected":false},"excerpt":{"rendered":" So many things are based on your credit rating today. The difference between having a high credit rating can cost or save you thousands of dollars.<\/p>\n","protected":false},"author":1,"featured_media":122,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[36],"tags":[33,37,38,32],"acf":[],"_links":{"self":[{"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/posts\/121"}],"collection":[{"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/comments?post=121"}],"version-history":[{"count":-1,"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/posts\/121\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/media\/122"}],"wp:attachment":[{"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/media?parent=121"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/categories?post=121"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/tags?post=121"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}<\/a><\/a>How To Track Your Credit Rating<\/h2>\n