44 - Develop a good credit rating

Reason for this Goal:       Establishment of a good credit rating is important to be able to borrow money from the bank.   One of the most important reasons to establish a good credit rating is to be able to finance the purchase of your first house  or to start your own business.

Your credit report is a record of how you manage your credit obligations. This data is analyzed and used to calculate your credit score. It is important to improve your credit rating if it is currently low. 

Your credit score is a number that lenders use to help them decide whether or not to extend you credit. It represents their risk assessment related to whether or not they can expect you to repay their money borrowed, according to the agreement you sign with them.

There are many places you can go to learn about credit scores, and there are courses taught by experienced professionals on how to systematically improve your credit scores.   Demonstrating a solid history of paying down your credit obligations on time, such as a credit card, is part of establishing your good credit rating.

Being able to borrow money to earn money, whether through passive investments (stocks, mutual funds, etc.) or active investments (real estate, business) is important to your financial success.

Suggested Goal(s):   Develop a credit score of __ or above.

Your Outrageous Goal:  Maintain an A+ credit score throughout your working life.

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Last updated: Feb 8, 2020