Debt Diet 2010: The credit check

It is extremely important to find out your credit score – this score is a based on your financial history and is a determining factor for various things such as:

  • Renting or buying a home
  • Buying a vehicle
  • Requesting open credit
  • Securing a loan or a mortgage
  • and much more…

Recently I decided to get honest with myself and start the debt diet (as you all know); it’s been going swimmingly and I am proud of myself. I’ve been a spender all my life and never really valued money until I lived on my own; I was smacked with reality and needed to get out quick – I moved back with my parents and decided to get money smart for 2010.

I’ve checked my credit a couple of times in the past. This is also good because you can see if any one has opened any fraudulent accounts by stealing your identity. Nothing to report here!

I was petrified that my credit score would be in the crapper; I am happy to report that is is a great score. My credit  ranks higher than 24.28% of the Canadian population; however, my creditworthiness is poor. There are a number of factors leading to this:

  1. My credit cards have a balance on each of them
  2. I have high interest rate credit cards (only one)
  3. I’ve closed four credit card accounts in the past (did you know this actually makes you take a hit on your credit score?! It’s absurd!)
  4. I have large loans (mainly student loans)

Thankfully I am taking the time to fix this problem before it gets more out of hand. I actually have to phone the credit score company to update a lot of stuff of the file; some of the personal information is outdated… it still has the address of my apartment on the file as my current address.

Checking my credit score and profile (I have 0 accounts that have been past due… EVAR!) has taken a huge weight off my shoulders. There still is a lot of work to be done, but I am so happy that my credit score hasn’t tanked to oblivion.

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