WHY IS CREDIT IMPORTANT? It’s National Credit Education Month!
WHY ARE CREDIT SCORES IMPORTANT? Your score will show banks and other lenders that you’re reliable and can repay your loan fully. So, if you ever want to take out a loan to buy a car, house, land, or business, you will get a larger loan at a better interest rate if you have a good credit score.
Do you remember seeing the Free Credit Report commercials on television? Each ad was entertaining and encouraged people to check their credit scores. But why are credit scores important? In honor of March being National Credit Education Month, let’s take a look at credit and why it’s important. WHAT IS A CREDIT SCORE? To begin, let’s first define credit. Credit allows you access to a certain amount of money available for loan. For example, when you use a credit card, you’re spending money you don’t have — it was loaned to you. A credit score is a report that predicts your credit behavior. Your credit behavior depends on how likely you are to repay your loan. In the credit card example, you’re spending money that was loaned to you, so at some point, you will need to pay all that money back. The likelihood of your paying back the loan will give credit reporting agencies the information they need to provide you with a credit score. Credit scores can fall into four categories: fair (580-669), good (670-739), very good (740-799), and excellent (800+). If you have a high credit score, you have responsible credit behavior, which can lead to you getting more loans.
HOW CAN YOU START BUILDING CREDIT? A credit card is one of the best ways to build your credit. However, you want to ensure you can pay off your credit card every month. Some people fall into heavy debt because they cannot pay off what they owe. You can also build credit by having a phone plan in your name, taking out federal student loans, and making rent payments, as paying these bills shows lenders you can make payments promptly and in full. If you have any questions about building and managing your credit or reducing your chances of going into debt, contact your financial advisor for more information. They can outline a strategy that will best fit your needs and help you achieve your financial goals.
plan in place, retirement can let you spread your wings in a way you never have before. Nothing else is holding you back, so you can decide what you want to do and who you want to be. Making retirement the best chapter of your life will look different for everyone, but doing so will require a growth mindset. A fixed mindset causes us to shy away from new experiences, interests, and abilities because they’re too complicated or frightening. However, a growth mindset starts from the premise that there’s always room for improvement and it’s never too late to learn something new. Still, finding passion and meaning in retirement can be difficult for many. So, where do you begin? Start by asking yourself some questions. When do you feel happiest? What have you always wanted to try? What would you do if fear wasn’t holding you back? And what makes you feel most fulfilled and purposeful?
If you struggle to answer, give yourself time to think. Those who still come up empty-handed may benefit from working with a therapist or life coach. While the two professions have different skills and purposes, both can help you become more introspective and discover what you are — or could be — passionate about. Throughout the process, it’s essential to keep an open mind. If you dismiss specific ideas immediately, ask yourself why and if they deserve additional consideration. Remember, too, that you won’t be good at everything right away. Everyone improves new skills as they practice — and you can still enjoy painting, for example, without being the next Rembrandt. The key to an exciting and fulfilling retirement is finding your passion and being willing to take a chance. Remember, you control your future and don’t have to spend it in a rocking chair unless you want to.
Retirement was once seen as a way for elderly people to live out their final days quietly. But human lifespans have gotten longer, medical care has improved, and we’ve started to rethink how our golden years can look. Retirement can be so much more than we’ve been led to believe, and Refired Not Retired Day on March 1 celebrates those possibilities. It doesn’t take long for many retirees to ask, “What now?” But the good news is that retirement can be almost anything. With more free time and a firm financial Finding Your Passion in Retirement FIRED UP
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