Bad Credit Is Expensive

Show Notes

• Proverbs 3:27 emphasizes the importance of paying back debts on time: "Do not withhold good from those to whom it is due, when it is in your power to do it."

• FICO scores range from 300 to 850, with a good score between 670 and 739.
• A very good score is between 740 and 799, and excellent is 800 to 850.
• Higher credit scores result in better interest rate offers from lenders.

• A higher credit score (740+) can significantly reduce interest rates on mortgages, personal loans, and credit cards.
• Example: Raising a credit score by 100 points (from 640 to 740) can save around $72,000 in interest over a 30-year $300,000 mortgage.
• A better credit score can also reduce interest rates on a $5,000 personal loan and credit card balances, saving substantial amounts over time.

• Higher credit scores can lead to lower home and auto insurance premiums.
• Employers may use credit scores in hiring decisions, potentially affecting job opportunities and income.

• Pay all bills on time and keep credit card balances below 30% of available credit.
• Build a credit history with a secured credit card, using it for routine expenses and paying off the balance in full each month.

• I'm 66 years old and disabled, receiving Social Security. I have only $15,000 to sustain the rest of my life and am looking for advice on how to manage this situation effectively.
• I have a pension and a 403B from my W-2 income, and I contribute to a SEP from my self-employment income. Should I continue matching my employer's after-tax contributions to the pension plan, or would it be better to invest elsewhere?
• What's your opinion on structured notes as a part of a well-diversified investment portfolio, especially ones backed by mortgages, considering they can be complex and have varying maturity lengths?

• Find a Certified Kingdom Advisor