Basics About Your Credit Score
What a credit score is and why you should care (if you care about your investments).
There’s a magical triple-digit number that seems to decide your fate in this world.
It can determine what car you drive, where you live, and how much money you can have at your disposal. And in some cases, it can make or break your success as a real estate investor.
It’s your credit score.
But it’s not as magical as it seems. There’s a logic to your credit score, and you have the power to change it.
So let’s break it down.
What is a Credit Score?
A credit score is a way for lenders to determine your “creditworthiness.” In other words, your “you-can-trust-me-to-pay-back-your-money”-ness.
Because you know whether someone can trust you with their money. But financial institutions don’t know you like you do.
Lenders need a way to decide if you’re safe to lend to. So your score tells them the story of your financial habits.
Need More Information?
Your credit score is incredibly important to keep on your radar. Especially when you’re investing in real estate.
It’s not a made up number that has no effect on your life. But it’s also not as difficult to understand as it may seem at first.
For more tips on building good credit and maximizing real estate investment leverage, check out these helpful videos on our Youtube Channel. You can also download our Credit Score Checklist at this link. Happy investing.
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