Keep Your Credit Score in Perspective

Credit scores are not a reflection of your financial health.

A credit score is important. It can be used when you apply for a new job and anytime you are looking to borrow money to finance a purchase (home, car, etc.). However, I have heard some people use their credit score almost as a defensive response to a poor financial picture as, "But my credit score is 720!"

That's great. But you're broke.

I get it. It's a number that helps you understand if you are 'winning,' but only at paying your bills on time. If you do not have a good credit score, it's important to get it on track because it can definitely be a pain in your tail if it's not where it needs to be when you need to use it. 

However, it has nothing to do with the health of your personal finances, such as being on track to retire with dignity, having an emergency fund for unexpected expenses or managing your spending via a budget.