Book Review: Your Credit Score

Today I’m reviewing the book Your Credit Score by Liz Pulliam Weston. The author Liz Pulliam Weston is a columnist at MSN Money. I picked up this book from the library when I browsed for new personal finance titles.

I hear a lot of buzz about the credit score and I don’t understand what the hype is about. After reading this book I still don’t understand why people think everybody should care about what their credit score is and everybody should manage their financial affairs around how the credit score is calculated.

The book gives information on what the credit score is, how it is used, what factors influence the credit score calculation, and how to improve your credit score if you have a bad one. Then it also says:

“You don’t need to have the very highest score to get good credit. Any score over 720 or so is going to get you the best rates and terms with the vast majority of lenders. You’ll have all the credit you need, and then some.”

Bingo. 720 is the average credit score for all population in the United States. I think it’s worth repeating: if you have an average credit score, you will be able to get the best rates and terms with the vast majority of lenders.

It turns out that people who have above average scores don’t have to worry. Use a few credit cards if you want to. Pay your bills on time. Don’t carry any balance. Use common sense. That’s it. I don’t know how much money is wasted by consumers who are scared into buying their credit score from the credit bureaus.

Rating: *** (average). If you have below-average credit, read it, otherwise, skip. You won’t miss much.

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Comments

  1. Ted Valentine says

    I completely agree with your feeling about credit scores. I have no debt and haven’t for years. Lenders have told me my credit is good. I’ve never had a problem getting credit when I needed it. Therefore I don’t really care about what my score is month to month or year to year because its not an issue.

    I swear many people see it as another category where they can be #1.

    I will add that the mysterious process of its calculation and the secretive way lenders apply it only add to the obsession.

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