How does a credit score have anything to do with how you live your life?
Your finances and score on your report matters because it all affects so many facets of your life. Ever had thoughts like these?
- “Why can’t I buy products when I’m online shopping and not feel guilty?”
- “Where is the cheapest gym membership?”
- “If I took cooking classes, I could have my family over and be the one cooking for them for once.”
- “I want to go out at night with my friends, wine and dine without checking my bank account the whole time.”
- “New furniture for my apartment would be great.”
It matters whether your score is good or bad because you should be able to do what you yearn for in your own life. Though if bad finances are in the way, it affects people doing what they wish in their life.
For a happy life, it should contain hobbies, things that make you smile and fill you up with joy. The Huffington Post has a list on how to be happy, with one that states to, “Spend money on experiences.” With money problems, it can be difficult to do that. It even goes into more detail on how exercising, developing your cooking skills, and spending money on other people can help.
Not having a high number for your score can affect your livelihood, employment, even transportation. But if you choose to make your credit better, you can improve your way of life, and have money to do the things you want.
“I don’t even have a credit card and no debt! I should be fine!”
Not having a credit card is not a positive thing. An article from Time goes into detail of why lack of credit is disadvantageous and could make you appear dubious to potential lenders. No visual trail, no way to see if you’re good with your funds.
Where to begin?
If you aren’t protecting and checking in on your financial information, start now. Canada Credit states in their credit protection information that according to The Canadian Anti-Fraud Centre, “… almost 16 billion dollars in losses directly related identity theft and fraud.” Do not let that become a reality for you.
Look at the credit score averages in Canada. It’s good to know the general idea of where it should and could be.
Get in the right mindset. Without the proper motivation, or if you put stress on yourself, no progress will happen.
What to do?
Check your credit report at least once a year. The Government of Canada states you should request a copy of it from one company, such as Equifax, wait six months, then request from another. TransUnion, for instance.
Make a budget and stick to your budget! Put funds away so you can’t even see it and pretend it doesn’t exist. Calculate your spending each day on meals and coffee and look at the total at the end of the week. More than you may think when you picture it all together that.
Keep your credit and financial history as long as you can. If your history is short, less evidence exists to whether it is satisfactory.
Have multiple types of credit on the go. CreditCards.com states, “Consumers with a ‘mix’ of credit types on their credit reports tend to be not so risky than those who have experience with only one type of credit.”
We are not saying that a good credit score or money is the key to happiness. Though it makes life easier, and easier to do the things that bring us happiness.