Does Your Credit Score Define You?

| September 21, 2017 | 0 Comments

Money makes the world go around, but the rules surrounding credit scores can often make your world feel like it stands still. When you have a low credit score, it can impact you for more than just the mortgage you hope to get one day. It can actually affect your self-confidence and how you perceive yourself as a responsible adult.

You don’t have to leave it that way, though. You are able to minimize the impact your credit score has on your life by managing the reasons that is low; namely, debt. Whether you’re on a set of bathroom scales, checking your bank balance or looking at your credit score, numbers seem to matter. We live in a society where the acceptance for a credit card from can put you in a far superior position than someone who gets rejected. Having bad credit can make you feel trapped in a cycle of debt – for years after bad circumstances have passed. Companies judge your ability to repay based on a time you couldn’t afford debt, and not with just the circumstances you have right now in front of you. It can feel demoralising to be turned down.

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The simple answer is that no, your credit score does not define you – as long as you don’t let it. Bad credit doesn’t end your chances to borrow money, even if it feels like that at the time. Having good credit is just one portion of your finances. You should remember that you are in a secure job that pays you enough money to have savings. If you are able to have savings, you are less likely to need to rely on credit to get you through a hard point in life. You shouldn’t stress about your credit score, regardless of how high or low it is. Most people in the world are constrained by low credit and most of the time, the low numbers are not their fault. Think about it – the first time you ever tried to get credit, you could have been turned down for it. This isn’t due to bad credit, this is due to lack of credit at all!

It’s one of those catch-22 situations: you need credit to get credit, but without it you cannot get it. It’s about as infuriating as the fact that computers decide your credit worthiness and not people. To get around this, having a parent or a friend guarantor you for a loan application can help. You need the banks and credit companies to trust you and sometimes this comes with the validation of someone else entirely. Credit can really impact life for some people, especially if those people are trying to get a mortgage for their first ever home. The trick? To realise that bad credit doesn’t have to rule your life and with time and payments, your bad credit will repair itself. Don’t let your credit score ruin your life – there are bigger things!

Category: Credit

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