September 24, 2020
2 MINUTE READ
You may have a friend in mind who seems to have everything figured out from a financial standpoint — they have little to no debt and seem to be completely in charge of their financial security. They’re fiscally responsible, have a well-organized financial life and maintain a high FICO score. How do they do it?
Don’t needlessly damage your score by making late payments simply because you’re not tuned in to your expenses. Also, make sure you know your credit score and are familiar with your own credit history by obtaining a credit report. You can’t maintain or repair a FICO score if you pretend it doesn’t exist.
One trait most financially successful people share is a desire to accrue or maintain wealth, not a desire to simply appear wealthy. The old adage about “keeping up with the Joneses” might make you look good at the next neighborhood gathering, but your credit score will suffer when you overextend yourself for the sake of appearances.
While the overall goal may ultimately be to establish and maintain a good credit score, it’s important to set concrete financial goals. Decide if you’d like to refinance your home, then work to maintain your credit score in order to achieve that goal. Rather than seeing your FICO score as an end goal in itself, consider your credit score a means of meeting your more tangible aspirations.
One of the most important and influential habits of financially successful people is that most are always working to gain more knowledge and a greater understanding of not only their own finances but also the overall financial landscape. Take time to review your credit report and set goals, research how your FICO score can be affected, and understand what determines a great credit score.