If you’ve read through my blog, you’ll read about me breaking my ankle back in 2013. I knew psychically I would be effected for a long time, maybe forever... but I never saw the implications that would have on my credit score.
Now if you’re a millennial... or you’re like me and you just have a lot of common sense, you “don’t get” credit scores and think they’re a load of crap. (And you probably think this because you always have money or a money source and are a classy, sophisticated person who makes and honest living and contributes productively to society). Unfortunately, uneducated and/or human trash have ruined it for us all and those trying to control the world, have employed boundaries to make it more difficult for the good people to succeed in life. [End rant].
To get back to my story, I broke my ankle playing lacrosse and luckily I was a member of US Lacrosse. Through their membership, you are eligible for secondary insurance if you're injured while playing. The problems started occurring when the hospital that originally treated me, the anesthesia for the surgery, and even the physical therapy company FAILED to put my medical bills through the secondary insurance. Overtime, instead of submitting the bills, they ended up in collections. To make a long story short, these bills have destroyed my credit. My score went from a 720 to a 695... if it’s even that high. I blew it off because they have since paid my bills in collections, but the damage remains--and now it’s preventing me from getting an apartment on my own. I’m forced to get a cosigner... me, with a ton of money in my savings account and who has paid off every credit card bill IN FULL since it was opened in 2001.
The point is, your credit score DOES matter, because the people who don’t know you, like landlords and rental offices, need something to judge how much of a “risk” you are. (Even though we know this doesn't work thanks to the faulty bank loans and financial crisis of 2008). Don’t let your credit get in the way of your success. Here are some things I wish I understood about credit before I found myself in this mess:
Key Lesson: Your credit score will impact obtaining leases from landlords/rental offices. Make sure BEFORE you waste your time and money submitting an application that you ask questions such as...
What is the minimum salary needed to be approved? Usually this is 3x the amount of the monthly rent.
What is the minimum credit score permitted?
Forbes (as usual) has a great article in improving your score pronto:
http://www.forbes.com/sites/moneybuilder/2014/05/02/11-ways-to-raise-your-credit-score-fast/
I hope that you crush this minor set back and make millions as a result so that you can give a big finger to the good ole’ credit score and just pay in cash.