If you are like most people, you have only a vague understanding of how credit is granted, obtained, recorded, and maintained. In fact, even if you have vast knowledge of the financial industry, you know that our credit system is not, in any way, based on an exact science. Our credit system and the related tracking of it is based largely on the subjectivity of individual decision making, variable credit scoring formulas, and the further variability of changing objectives amongst the financial institutions granting the credit.
So, whether or not you are credit wise, there is always more information to gather and insight to gain. Here are three things you can do to increase your credit knowledge:
1.Clarify any misconceptions
2.Establish what you know and what you don’t know
3.Identify steps that you can take to improve your financial standing
Once you have completed these steps, you will immediately start to see more money in your pocket and in your accounts in the form of lower monthly payments, better cash flow, and lower borrowing rates. I guarantee it!
This article is part of Scott Arney's educational series, entitled The Serial Decision Maker.