Does Your Credit Score Make You Smile?
Hispanics say high credit scores are the key to greater wealth and happiness.
Many people spend their lives in the pursuit of happiness, but what if it’s not as elusive as we think? Here’s something you should ponder. Does your credit score really affect your level of happiness and wellbeing? Many Hispanics think it does.
A survey done by Chase Slate reveals that 70 percent of Hispanics believe that higher credit scores are the answer to greater happiness and financial opportunities, compared to 59 percent of the general population.
This shows that Hispanics have come a long way with how they view credit, says Consolidated Credit’s Community Development Manager, Beatriz Hartman.
“Many first generation Hispanics were not taught about credit, some lack credit and some have bad credit, because they were not taught from the beginning how credit works in this country.”
Now realizing the benefits of having a great credit score, Hispanics are putting the crunch on poor financial habits by paying off debt, paying bills on time and keeping low card balances, indicates Chase. In fact, 72 percent of the respondents are planning to get serious about improving their credit scores over the next year.
With this in mind, Chase Slate’s financial education partner Farnoosh Torabi advises Hispanic families to not be afraid of knowing their score and understanding the factors that impact it.
“Contrary to popular belief, checking your credit score yourself does not negatively impact your score. This is the first and most important step to start making improvements and to stay on top of your credit health.”
So the question still remains, can improving your credit make you a happier person? Credit reporting expert, John Ulzheimer says yes.
He calls high credit scores “a wealth building tool that helps increase savings in the long run.” That’s more than enough reason to be happy.
“A good score means lower interest rates and that’s money every month that you’re not giving to a lender that you can use for your child’s college fund or other investments. One way of building wealth is not spending more that you have to,” explained Ulzheimer, while participating on Experian’s Credit Hangout.
Many companies and financial institutions use credit scores to set rates and to assign fees. A high credit score is favorable when applying for loans, renting an apartment or when applying for certain jobs. Even telecom and utility companies use credit scores to assess the risk of doing business with you, and homeowner’s or auto insurance companies use them to determine what kind of customer you’re going to be.
Since your financial happiness may be riding on a number, you may want to find out ways of improving your credit scores, and how you can use a great score to your advantage.