We’re minding the store when it comes to our credit score
Bottom Line: Progress is a good thing. When it comes to credit scores, knowledge is important and if not powerful, it’s at least valuable. A couple of years ago I broke out the average increase in cost of living for an adult in Florida with good vs bad credit. The difference...$2,500. That doesn’t even account for the access that’s available or cut off to various things we might want in life (like a mortgage), just the increased cost of living to maintain a poor credit score. One of the biggest mistakes people make when it comes to credit scores is discounting how much of life is impacted by them. Hint, just about everything that’s financial. From your mobile service providers to insurance products, your credit score will save or cost you into the thousands per year.
Nowhere is this more noticeable than with auto and home insurance products. Did you know that the average cost of both forms of insurance is double for those with bad credit compared to good? Establishing and maintaining a good credit score is one of the most important financial moves you can make. And here’s the good news. Not only are we at for record high credit scores (with the average now above 700), we’re also at record high awareness. According to Discover’s annual Credit Health Survey:
- 82% of all adults know their credit score including...
- 93% of Millennials
Just two years ago Discover said only 57% of Millennials were aware of their credit scores. That’s great progress in two years. It’s probably contributing to the record high credit scores we’re now seeing. There isn’t anyone who wouldn’t want an extra $2,500+ per year and access to more things in life. One of the easiest ways to get there is having a good credit score.