Credit score is an essential part of your financial life, setting you up for success in the long-term. Whether you are a recent college graduate, starting your first job, or in your 40’s and a mid-career professional, credit score remains equally as important. While it’s extremely important to save money when you are first starting out, it’s also quite important to know how to spend money and understand the repercussions of not spending responsibly.
We read an interesting article that reported New Experian data that found consumers between the ages of 39 to 53 (aka Generation X) have a considerable gap in their credit scores when compared to older generations. The credit bureau’s 2020 State of Credit report shows that Gen Xers, with an average credit score of 676, are closer to the scores of Gen Y/millennials (658) and Gen Z (654) than they are to Boomers (716) and the Silent Generation (729).
No matter your age or financial situation, paying your bills on time is a crucial part of building and maintaining solid credit score. Having a good credit score helps you when its time to take out a mortgage, purchase a new car, or get a new credit card with better benefits.
It’s crucial to make sure you know how to track your payments and and credit score every month. Consider using credit monitoring apps such as Credit Karma that update you with real life changes or sites such as AnnualCreditReport.com to see where your credit stands and ways to improve it.
If you have any questions about your credit score of explaining it to your children or grandchildren, we are happy to help. Please reach out to us with any questions at info@shermanwealth.com or book a free 30-minute consultation here.
