Keeping Tabs on Your Credit Score
Keeping tabs on our credit score is an integral part of personal finance. It’s not enough to know what number your credit score stands for, why it changes, and the factors influencing it.
As a pain management specialist who always advocates for being proactive and taking responsibility for one’s well being, Dr. Jordan Sudberg shares a few reasons why we should be keeping tabs on our credit score and what it means to our financial health. Dr. Sudberg specializes in pain management and helping people recover from chronic pain. Some of the reasons he gives on why one should be keeping tabs on their credit score and the factors that affect it include:
1. We Are In Control of Our Financial Health
Too often, people think that what they have or don’t have is out of their control. This is not the case with your credit score. Your credit score is not set in stone. Even if you cannot do anything about negative items on your credit report, you can control other factors that will improve your financial health. One such example is paying off debts and having a positive balance in one’s bank account. Keeping tabs on your credit score will help you monitor and improve it even more.
2. We Get Our Credit Report
When you have a credit score, you will start receiving notifications on your financial health. You won’t only be notified when you are late with payments but also when someone checks your credit report. This is something that you can use to your advantage. You can ensure that what is on your credit report is accurate and that no one has been using your identity to make purchases or apply for loans or credit cards. You also have the option to intervene and update any account information, or you can opt not to send anyone updates. Your credit score will improve as soon as certain accounts are updated with the information you have provided.
3. Access To Loans And Credit Cards
Dr. Jordan Sudberg believes that monitoring your credit score to see if you are eligible for loans or credit cards is crucial. You can use this information to help you find the best loan products that work for you and will not leave you at risk of becoming in over your head. On top of this, many companies look at your credit score before they evaluate if they will approve you as a candidate. This will give you an extra edge since you can access the product before anyone else even has a chance to apply.
4. Keeps One From Overspending
Monitoring and seeing the things on your credit report is vital because it allows you to stay on top of what is happening and helps you avoid spending more than you have. If the credit report is accurate and you have been paying your bills on time, you can prevent bad debt and overspending. An active credit score shows that you are a responsible financial citizen who can afford to make big purchases while still paying off your current debts. This makes your chances of getting loans and credit cards much higher.