MadAbout
Money
YOU HAVE THE POWER TO MAKE A POSITIVE CHANGE, AND
YOU CAN START UTILIZING THAT POWER AS SOON AS NOW.
FORMING GOOD FINANCIAL HABITS IS THE REAL “WEALTH,”
MINUS TO
CREDITS - PLUS
TO WEALTH
YOUR CREDIT
SCORE IS AS
GOOD AS YOUR
DEBT SCORE
Alas, your credit score is
not an indicator of your
good income or strong
bank balance. It just tells
you whether you are
reliable enough to lend
money to and your ability
to pay it back. That’s about
it. In simple words, no
need to celebrate. Your
credit score is as good
as your debt score. To
understand how credit
score measures up, here
is the calculation:
3 5% of your score is
based on your debt
history.
A
good credit score
takes you places.
You will find banks
running after you, providing premium services,
cards, and higher loans
even if you don’t want
them! But on a serious
note, it takes you notches higher in eligibility
with financial institutions,
and it has nothing to do
with you income.
30% is based on your
debt level.
15% is based on the
length of time you’ve
been in debt.
10% is based on new
debt.
10% is based on the
type of debt.
In other words, stay in debt
for as long as you can. How
ridiculous is that?
INCOME IS A
MINUSCULE PART
OF THE EQUATION
Also, even if you are rich
but make bad financial
choices, or delay in
repayments negatively,
it will impact your credit
score. Since credit
depends on so many
different factors, income
is a minuscule part of
the equation.
The best plan is to pay
off all old debts and not
open any new ones. Then
perhaps you’ll become
debt-free. Relieve yourself
from all credit cards, car
and student loans, etc.
And one fine day you’ll
knock off that last burden
on your shoulders - the
mortgage. As a result, your
credit score will become
“indeterminable.” This is
great news! Through this
technique, you can save a
ton of money, and you’re
able to pay in cash for all
purchases. With this, you
don’t need a credit score,
since you don’t plan on
using credit! Doesn’t this
sound great!
In case you are looking at
improving your financial
situation, wait for a salary
hike or higher revenue
in your business. Instead
of depending on your
credit score to improve
your financial situations,
cultivate good financial
habits to improve your
financial circumstances.
You have the power to
make a positive change,
and you can start utilizing
that power as soon as
now. Forming good
financial habits is the real
“wealth,” and you can
buy just about anything
you wish. Learn the
techniques of saving
money and making the
right investment choices.
It will improve not only
your wealth status but
also your ability to stay off
debts and increase your
purchasing power. You
will automatically get the
best score amongst the
banking institutions.
So don’t keep praising
your credit score because
your life will be much
better without it. Discard
all debts, save money and
pay cash. Do that, and you
will be well on your way
towards building wealth—
not your credit score.
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