Funds Blog

Is Credit Restoration a Pipe Dream?

Credit seems to be the buzz-word regarding the economy these days. Credit is something that affects the biggest banks in the country as well individuals like me and you. And according to the government a credit crunch and banks unable to lend would be devastating to our economy. So the macro-economics (big picture) and the politics of credit is confusing, and even irrelevant for those of us who are struggling month to month.

So your credit score is just an intangible number, but it also can have a great effect on your day to day life. It can effect whether or not you can lease an apartment or get utilities, if you can get a car to drive to work, and other aspects of our day to day lives.

The first thing to you have to do to restore your credit is research and understand what exactly goes into computer your credit score. You will be running around in circles and wasting your effort if you do not.

Basically, your credit score is a number (calculated differently by different companies) that is calculated by a mathematical algorithm. It is important to realize that credit is a numbers game. It does not factor in the human circumstances; such as job loss, natural disasters, health problems etc., that in reality truly effect a persons financial situation.

If you are able to think about your financial situation objectively and from a mathematical perspective then you can restore your credit. Knowing how your credit score is calculated is the only way to get leverage and restore your credit back to excellent.

Credit scores and credit reports are not the same thing. Check out my website to learn more about the differences.

Would you be surprised to know that there are only 5 factors that are involved in determining your credit score? Would you be surprised to learn that income was not one of them? If you want to read about all of them, please visit my website.