Generation Wisdom

Your credit is like your financial reputation. 

It is just like a friend who always borrows money and never repays you.  After a few times of loaning them that $5’s they never give back you wise up and realize they are never going to repay you.  So you stop lending them your money.  But what happens when you have a friend who always gives back what they borrow?  You as a lender happily let them borrow, because they have a great reputation.  Their is no question about their integrity, because they have proven it to you.

Credit is the exact same thing.  Bad credit is someone with a bad financial reputation, and good credit is someone with a good financial reputation.  The lender looks at your credit score and determines what kind of reputation you have, because he wants to know you’ll be the kind of person with integrity to pay him back.

If you have any questions about credit send me an email generationwisdom@yahoo.com or drop me a comment at the end of this posting.

Your credit reputation is very important!  With bad credit or no credit you’ll be over charged by companies, banks and you may not even qualify for credit.  Here are some reasons you’ll want good credit as an adult: to get a cell phone account, have decent car insurance rates, receive home loans or car loans, get credit cards…the list goes on.  At one financial meeting I went to the speaker said soon employers will judge your ability to do a job you are applying for based on your credit scores.  For all these reasons and more I want to stress the importance of having a good financial reputation. 

Take care of your financial future today by learning what you need to do in order to build a great financial reputation through your credit score.