Do you understand your credit health? Do you know why your credit health matters and what impact it’s having on your life? If you don’t that’s okay, because you aren’t the only one. There are plenty of people that do not understand why their credit health matters.
Your credit health, and in the same way your credit score, is extremely important in life. Understanding your credit health can help you in not only financial situations, but every aspect of your life. So much of the current system is built on the idea of credit and it’s important to understand credit so you can use it to your own personal advantages.
What Is My Credit Health?
Your credit health is your overall credit portfolio including your credit report and your credit score. It sounds complicated, but it’s really just an example of how creditable you are. Great credit health, usually as a result of a great credit score and credit report, means you are more creditable than when you have bad credit health.
The best way to have great credit health is to practice good credit habits. This means paying bills on time, paying off payments such as mortgages and car loans on time, and taking steps to improve your credit health when it has fallen.
What Is The Difference Between A Credit Report And A Credit Score?
Both your credit report and credit score impact your credit health. A credit score is a way for anyone that may offer you a loan, let you rent/purchase a home, or let you finance a car to get a quick look at your creditability.
Your credit score is usually on a 300-850 scale, but that is not universal across all credit score systems. That said, a low credit score is worse than a high credit score. That is universal. Your credit score is also not a full look into your credit. It merely is a quick look at your credit.
Your credit report on the other hand has every detail it can about your credit. It features bills that reached collection, late car payments, foreclosures, and bankruptcies. Even if your credit score is 850, if you have had a bankruptcy or had a bill reach collection, that is going to stay on your credit report for seven years.
So even if you have a great credit score that does not always necessarily mean you have perfect credit health.
All of this said, having a great credit score fixes a lot of headaches in the credit world. Your credit score, because it’s a quick look at your credit, is what a lot of places like banks or car dealerships focus on. If you come in with a 750 credit score to purchase a car you are more than likely going to be able to purchase that car with a low interest rate. Even if you have a bill that reached collection five years beforehand.
So it’s important to have a great credit score. How do you do this? By practicing good credit habits. Not letting bills reach collection is a major key in this. If you have a credit card then you have to make sure that you aren’t overspending and can always pay it off. One of the biggest causes of poor credit scores are people who frequently can’t pay off their credit card bills.
While a credit score is not the end all be all it is an extremely important part of your credit health and something you need to always take into consideration.
Your credit report isn’t looked at quite as frequently but can still play a major role in your life. Especially if you had a large credit moment at some point such as a foreclosure or bankruptcy.
When you are looking to purchase a home or receive a mortgage, they are going to look beyond your credit score. They will want to know if you have had a major life moment like this. Now, this does not mean you will never be able to purchase a home. A misconception of bankruptcy is that it will ruin you for the rest of your life, but it does play a role on your credit report.
Since your credit report is more detailed it is typically looked at for much larger purchases. Banks and other large loan givers want to make sure that you are someone that can be trusted with this kind of loan.
This is where having good credit habits can help you. If you had a foreclosure five to seven years ago and it’s still on your report, but everything after that is completely clean, then you may be able to purchase a home without too much issue. You’ve shown over time that you are trustworthy and worth homeownership.
I would also like to note that at Shamika Saves I can help remove bankruptcy from your credit report. Watch my video for more details.
How Shamika Saves Can Help You
If you are someone that is currently experiencing poor credit health then you may feel like you don’t know if there’s a way to improve it. At Shamika Saves I can help you take your credit and get you into the land of great credit health.
I offer credit consultation courses that can teach you how to turn your credit around. It does involve a lifestyle change because you can’t reach good credit without committing your entire life to it, but if you do then you will get to experience the benefits of being someone that lives every day with a good credit score. It may even lead to a little extra money in your pocket to.
Once I’ve helped you with credit consultation I can go through your credit report and remove certain charges and fees. This will help raise your credit score and help improve your credit report.
As time goes on your credit score will rise and extra charges like interest fees will drop dramatically. You’ll be able to purchase a home, a car, and apply for credit cards with far less stress than usual.
Take The Necessary Steps Towards Credit Health
Having great credit health will be an improvement to your life as a whole. If you are tired of living in fear of collection calls, if you have ever felt like you just used a credit card to pay for groceries you can’t afford, or if you don’t know what to do after your home was foreclosed on then contact me at Shamika Saves.
I can help you take your credit health and push it towards the positive. Based in Melbourne Beach, Florida I’ve seen plenty members of the community that have been forgotten about. I am here to represent you and help you.
If you are ready to improve your credit health then feel free to give me a call at 254-702-5426. You can also use my online contact form. Have a short question for me? Send it my way and I can answer it for you.
Set up a consultation appointment with me so I can learn how I can help you.