We must gather knowledge to handle our finances properly. Without proper information, you can’t manage any of your financial tools. The same applies to credit cards also. Now, many credit card companies are giving credit scores to their consumers, almost every month. The process becomes very helpful for the consumers as they can now see every financial move they are taking, and its outcome on their credit score. But, there is a chance that observing the fluctuation of your credit score too often may make you obsessed with it badly.
Having a good credit score is always a great thing, here are a few signs you might want to change to avoid the obsession with credit score:
1. You are only concerned about the score
It’ll be very disappointing if you put your entire concentration on your credit score rather than your credit report. Being a credit score-obsessed individual, you are not doing any help or favor to your finances. There’s no point of getting an updated credit score each month.
If you did any financial mistakes, it’d be shown in your credit report, not in your credit score. Depending on your credit report, the lenders will review any loan application from you. Your credit score will not provide you the data which will influence the lenders to approve or unapprove your application. So, apart from periodic credit score checking, you must also give priority to getting an annual copy of your credit report and verify the real information from there.
2. Small credit score fluctuation makes you stressed
As per FICO, the most popular and used credit score is 850. If your credit score is 800 or higher, small fluctuation will not cause any major harm to you. You must also know the fact that your credit score will not stay static every time you check it. Your spending through credit cards, payment frequency and lots of other factors helped the credit score to become dynamic.
3. Your score makes you frustrated
If you are getting obsessed with your credit score, a small drop can dishearten you heavily. Sometimes people are getting out of focus from their finances due to such frustration. So, it's very crucial to improve your credit behavior and stop checking your credit score repeatedly. You can set your date for checking it after each 3 or 6 months.
4. You're giving priority to the score while making financial decisions
You may damage your finances in order to improve your credit score. Steps taken for credit score improvement may lead you towards financial distress. For example, if you maintain a high-interest credit card just because it is an old credit account that’ll push your credit score, you’re doing it wrong. You’ll soon understand that high interest and a possible high annual fee will drain out your funds, right before your eyes.
5. You totally avoiding your credit score
People get obsessed with their credit score due to several reasons. But there are exceptions also, it’s basically the negative obsession. Few people are getting too much anxious after seeing their credit score dropping down. They started to avoid checking the score totally.
Whenever you go for a credit card or mortgage loan, your lender will check your credit score. So, the most important thing to impress your lender is to build a good credit score through proper financial behavior. Check your score and rectify your mistakes. But Getting obsessed for your credit score is not a way to grow it further. Take necessary steps to improve it, make a good financial move, and most importantly - never forget to pay your bills on time.