Record High Credit Scores
Bottom Line: Near record low unemployment (including a record low rate for Floridians) and record high wages that have been rising faster than the cost of living for three consecutive years have brought us another record. Credit Scores. Collectively our country’s credit score entered 2020 at an all-time high of 703 according to Experian. That’s two points ahead of the prior year and solidly in “good” territory. This is great news all around as one’s credit score dictates the cost of everything from loans to car insurance and even deposits for utility services. In fact, how big of a deal is a good vs.bad credit score? Consider this, in South Florida for a two-car household, the difference in auto insurance alone is just over $2,000 per year. That’s just auto insurance! What about the roof over your head? Aside from potentially limited options with poor credit, the cost for a like rent or mortgage rate for good vs bad credit will run you about another $2220 annually at current conditions. You get the idea.
I have a saying that I haven’t broken out in at least a few years that’s as true today as it’s ever been. The number one reason why poor people stay poor is a bad credit score. Everything in life becomes more expensive when a poor credit score is maintained. That’s not meant to make you feel bad if that hits you between the eyes. Life happens. The average person faces significant negative financial adversity once every eight years. The question is what will you do when you’re knocked down? The key is to getting up and getting back on track as quickly as possible. The good news is that today’s economy provides the best opportunity to improve your current situation in our country’s history.