Thursday 5 January 2017

Everything A Mom Needs To Know About Credit Scores

Until you become an independent adult, you probably don’t hear anything about credit scores. So, the first time you do hear this term, it can be both confusing and scary for you. Especially seeing as you’re only likely to hear it when you’re making a big financial decision. It can derail you and provide setbacks for you and your family. As a result, I think it’s important that all moms know about credit scores and what they entail. Feel free to read this article and gain more information on the topic:

What Is A Credit Score?
The best way to start is by discussing what a credit score actually is. In short, it’s a number that determines your creditworthiness. What this means is that lenders look at your credit score and its value helps them decide if you’re worthy of credit, and how much they should give you. High scores are good, while bad scores are low.

Does A Credit Score Change?
Yes, credit scores can change over time depending on your financial activity. If you’re someone that constantly maxes out their credit card and misses bill payments, then your score will quickly drop really low. However, there are many things you can do to help build up credit, and improve your score. There are plenty of sites where you can learn more about this and start building up as much credit as possible to get the best score for you and your family. Be warned, even if you raise your score to an impressive value, it will often only take one bad decision to drop it right down again.

Can You Check A Credit Score Whenever You Like?
Some people are unaware that you can actually check your credit score whenever you like. There are loads of sites and companies that provide free credit score checks for people all over the world. I definitely suggest all moms do this as it keeps you in the loop. You’ll know where your score stands and whether or not you should adjust your financial activity to improve it or stop it from falling down even lower.

How Does A Credit Score Affect A Family?
Naturally, as mothers, everything we do in life is with our family in mind. Consequently, I’m sure you all want to know how credit scores relate to you and your children. In truth, they can be both extremely negative and extremely positive. When your score is bad, it’s obviously a very negative thing. This means that lenders are less likely to approve your applications and give you the credit you want. What does this mean? It means you’ll struggle to get a good mortgage or a personal loan to help you pay for home improvements or repairs. There are many purchases you make that require you to borrow money, and a bad credit score can hinder this. Likewise, a good one can make life easier, and your family can borrow as much money as they need and pay for essential things like a new home or family car.

Hopefully, after reading this piece, you’ve learnt a bit more about credit scores and now know how they affect you and what you need to be wary of!

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