| What Exactly Does "Your Credit" Mean? |
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| Written by Michelle Louis |
| Monday, 22 June 2009 11:57 |
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I will be honest, after the past 18 months of listening to the word credit thrown around by every "expert" that opens their mouth or writes a sentence, I have had about enough of it. Are we in a "credit crunch?" Is credit really that important to our economy? To be honest, I just want to pay my bills and go a good vacation this week and I do not really care.
I will be honest, after the past 18 months of listening to the word credit thrown around by every "expert" that opens their mouth or writes a sentence, I have had about enough of it. Are we in a "credit crunch?" Is credit really that important to our economy? To be honest, I just want to pay my bills and go a good vacation this week and I do not really care. It is scary to believe how much impact this intangible concept will have on your life. It could stop you from being able to turn on your utilities or even have a place to live at all. So, whether we like it or not we have to adapt to having our financial futures partly determined by our credit. The good news is we do have control over our credit score. Chances are, if you are reading an article about credit restoration then you have bad credit that you need restored back to good. The most important part of restoring your credit is to understand what exactly your credit is and what things effect your credit. I put things and your credit in quotations because to me they seem to be ambiguous phrases that need to be clarified and explained in order to move forward to financial freedom. Basically, your credit score is a number (calculated differently by different companies) that is calculated by a mathematical algorithm. It is important to realize that credit is a numbers game. It does not factor in the human circumstances; such as job loss, natural disasters, health problems etc., that in reality truly effect a persons financial situation. If you are able to think about your financial situation objectively and from a mathematical perspective then you can restore your credit. Knowing how your credit score is calculated is the only way to get leverage and restore your credit back to excellent. Here is your first lesson in credit scores. There is a difference between a credit score and a credit report! You probably knew this, but check out my website to learn more about this. Would you be surprised to know that there are only 5 factors that are involved in determining your credit score? Would you be surprised to learn that income was not one of them? If you want to read about all of them, please visit my website. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. find debt relief now from an excellent website about debt relief |