Credit Score, Beacon Score, Credit Report
 February 9 2016     Posted by Steve Bucher

Credit!!! Whats it all about?

Credit, your credit score, your beacon score etc. is the DOCUMENTED history of how you have repaid debt. Notice I said documented… If the lender doesn’t report your payments, then the history does not exist.

Folks without credit cards, line of credits and loans often have no credit score because they have no history of repaying debt. IF you have a credit card, but have never used it, you may also have no credit score!!!

Credit is something to be nurtured and cared for. It takes planning, self control and stewardship. Credit is what you use on your worst day. If you use all your credit on your best day, then there will be no cards to help you if disaster strikes.

Credit limits: Folks often say no to increases in their credit limits, but higher limits will mean a higher score. If you lack discipline with a $1000 card, then a $10,000 card wont help you… it may make things worse. But if you are disciplined with $1000 in max limit, then a $10,000 max limit will help you. How?

The higher max limit means you have more space in case disaster strikesif you use your card, the ratio of use to limit is lower – spend $1000 on a $1000 card and your ratio is 1:1 (thats bad), spend $2000 on a $10,000 card and your ratio is .2:1 (better)a higher max limit that is never abused is a positive sign to lenders that you are able to handle large amounts of credit

Want to learn more? Check out: All About Credit