Credit scores reflect a skillful ability to manage money. These scores also reflect a negative inability to control and manage personal finances too. Before grumbling at the topic; imagine the possibilities to decrease personal financial problems and increase professional gains.
Positive thinking is the mature,rational and logical way to view and understand credit scores. To emotionally dislike credit scores enables impulsive spending habits and irresponsible, immature financial consequences that will be reflected in credit scores. Stop doing this. How we feel about our money can deprive us of our abilities to control personal finance and will reduce professional gain.
Let's look at facts and possible solutions.
Credit reports can demonstrate personal ability to effectively communicate to resolve problems. Through effective communication to resolve problems that affect credit scores, a person will be able to decrease debt errors and increase credit scores favorably. How many employers require effective communicators of problem solving and an ability to prove favorable results of conflicts?
Credit scores are the only primary indicator in our lives that we have to detail the financial management skills we possess. Why fight the system immaturely? Why not learn how to use the system to positively benefit us instead?
Employers can use credit scores to select candidates for a job based on their personal financial performances versus the detailed resume work experiences. Employers can use credit scores to determine which employees are suitable for promotions and which are not by their credit score.
Can you imagine our credit scores being the only qualification and determination factor for promotions or getting hired? This financial analysis of our personal life is a truthful indicator of our professional lives and capabilities too.
Employers should use credit scores to evaluate the facts and potential of employees. This is wise financial business sense. In business, we know it's not suppose to be personal; but it should be. Creating a healthy work and home life balance is not something most Americans can do and our credit scores represent this.
Credit scores reflect personal honesty and integrity of mature and immature lifestyles. These scores are important indicators about our economy too.
Could credit scores help decrease company liabilities of high risk employees who make poor personal financial decisions? As an employer, wouldn't you want to use facts to evaluate current employees or new hires for their knowledge, skills and abilities?
Let's look at numerical facts. According to Debt.org by Al Krulik, Debt Specialist; Americans are 11.4 Trillion Dollars in debt. We are the consumers and employees who choose to be in debt.
Estimation of the Population Clock of total Americans is 322,042,020 people. This number changes every second for births and deaths. In the second of writing this fact - this equates to $34,157.03 of debt for each person!
This means newborns entering American life are already experiencing a negative financial impact of: $34,157.03 worth of debt. With the increasing cost of healthcare - how true these math facts are.
Yes, we can blame governmental politics for their inabilities to manage our taxpaying contributions, but are we any better at managing our personal finances?
Will our credit score reflect favorably? Or are we just a high risk liability waiting to happen? Bottom line - Do we responsibly control our money?
Our ability to control and manage personal finance will reflect our financial abilities of the job performance we will do. Our personal choices do become a negative or positive consequence to our national economy and in our professional gains.
By the statistics of Debt.org, most Americans have a credit score of 680 out of 900 possible.
Americans are not high achievers as individual financial experts based on average credit scores. Even if, job experiences and title roles detail a different picture; the bigger picture displays the financial truth.
Most Americans are financially performing at 80% efficiency in their personal financial matters. But yet, we wonder why businesses are suffering profit loss and many employees suffer from financial stresses in their personal lives.
How many financial crimes could be prevented personally and professionally with financial education and responsible money skill building? What if our efforts of time were spent in learning how to control and produce favorable financial results,instead of, doing nothing at all? What could our positive possibilities be?
Responsible management of accounts payable and receivable begins at home; before they can become effective on the job. If you cannot nor will not pay and manage your bills at home. How can an employer trust you to do it for them?
Ledgers of revenues, expenses and petty cash control must begin in the home; before it will be effectively managed and responsibly controlled at work. If you cannot nor will not manage your cash, expenses and revenue at home; than how can you handle others at work?
Companies wonder where their financial failures are at? Employees wonder where their financial failures are at? The answers are in our credit reports that tell others who each of us are as individuals on-the-clock and off-the-clock.
The internet has many creditable free Financial Literacy courses to take online. Whatever debt and financial struggles you maybe having; you can change the outcome by learning new skills to decrease your problems and increase positive results.
No one knows the financial budget your home has to survive on. No one can control your personal financial situation better than you. Get qualified to excel at your personal finances first before seeking to control financial operations in your professional life.
These websites offer education to learn and improve money skills. Make the time investment in free learning to control your money and let your testimony of professional abilities reflect honestly in your credit score.
- Financial Literacy course by Alison.com teaches practical and beneficial advice in this course to help control personal finance and home budgets. A diploma can be printed upon completion for this course to use for professional skills accreditation.
- Debt.org teaches skills to manage credit card debt and to use credit wisely to improve credit scores.
- Review monthly credit account statements. Look specifically at interest charges. Increase monthly payment by paying regular payment and the total interest fee charged, if possible. Example: Regular minimum payment is: $25.00. Interest charged for this month is: $11.00. Increase payment to: $36.00. This little bit of extra will decrease principal balance owed and cover interest fees. This reflects to the credit reporting agencies you are ahead of the debt - not behind it. This will increase credit scores.
- Consider paying additional monthly payments on credit accounts. Example: Pay online the regular $20.00 minimal monthly payment. Then proceed to mail in a separate check with letter marked for "Principle Only" Payment. This will decrease the balance of the account quicker and decrease interest charges. This improves credit scores.
- Keep credit accounts below the 30% limit. $200 worth of credit is not really $200 that should be spent. This is how credit traps happen to people and poor credit scores occur. Example: If a credit account has a $500 limit, this equates to never spending more than $150 to retain a good credit rating. Staying below the 30% limit will prove responsible and mature financial management skills on a credit report. Scores will go up quickly by staying below the 30% margin of credit limit and paying to decrease any balance owed that goes over the 30% limit. Example: Account has a credit balance due of: $654 on a $900 credit limit. This scores bad each month the balance is over $270. By making a one-time payment of:$384 the account balance will go under the 30% and immediately be reported to 100% good credit limit standing and increase the D score to an A score giving immediate favorable credit score results.
- Analyze credit report. Particularly look for companies you pay monthly and for credit accounts that report to the credit bureau. If credit accounts or companies are not reporting to the credit bureau than they can not hurt your credit nor can they help build your credit either. Example: (only as an example and not as a fact) - AT&T reports monthly on a credit report for cell phone services. Verizon does not. AT&T reports monthly about on time payments, duration of account and information about credit worthiness. Verizon does not do this. Cancel Verizon services and choose AT&T because AT&T will benefit your credit score, Verizon will not.
- Pay bills on time before the due date. Manage your credit accounts responsibly. Reconcile your credit accounts as you would your checking accounts.
- Consider cash expenses to help build credit.Monthly cash expenses for gas, groceries, and household necessities can be used to create revolving credit expenses and increase credit scores. Example: Gas/transportation costs in a monthly budget of $200 would be paid for in cash. Instead,consider opening a credit card specifically for gas/ transportation allowance only. If the credit card limit would be $400 - 30% of this $400 spending limit will only be $120 monthly to maturely spend and help improve credit score. Of the $200 cash budget for gas/transportation - put $120 gas/transportation expenses on the card and pay off the balance each month in the grace period so no interest will occur. The $200 gas/transportation budget would now be split for $80 cash purchase and $120 to build credit and pay the account off monthly. Most companies do allow 25-30 days to pay off the complete balance with no extra fees or interest charged. By using an existing regular monthly expense on a designated card - it will keep new information reported to the credit bureaus and will help decrease any negative reports that cannot be resolved. If you must spend cash or credit to survive in regular monthly expenses; why not learn how to use the system to benefit your life and increase your credit score?
- Credit scores reflect the ability to manage and balance personal life to give truth of our professional skills. If our professional evaluations do not sync with our credit scores; than it is our duty as responsible and mature Americans to financially resolve these problems and learn skills necessary to balance our home life and our work life - not our employers.
