Many people that we talk to have an obsession over their FICO score. They are concerned that their score is too low, so they want to know how to raise their score so they can see a tangible number that will deceive them into believing that they are financially successful. My friends, It’s time to demystify this common misunderstanding. You see, your Credit Score (FICO) is based solely on your relationship with Debt and your ability to handle risk. It is not based on your income, net worth, job security or personal financial health. You cannot win with money if you continue to take on debt just so your FICO score remains high. Wouldn’t it be much better to be debt free and not have to worry about this misleading score that everyone and every financial institution has placed on a throne? A high 700 to 800 credit score means that you have paid thousands of dollars in interest on the debt you bought. Where in that equation shows that you have won with money?
In order to maintain that score, you must borrow more money often, pay it on time and continue to build on your financial lender’s bottom line. He becomes rich and you….well….become a slave! Why not reverse your thought process and begin to understand the truth about financial freedom. For three years, WayPoints Financial Services has developed a tool that will provide you with a score that will show you if you are winning with money. We call this the Financial Freedom Score. It is based on a range of 0 to 1000 points and it evaluates 8 financial categories that are each weighted and scaled according to their relevance. The category algorithms are fed by our Financial GPS (Goal Planning System). The areas that are evaluated and given their own score are your Short Term Emergency Savings, Unsecured Debt, Long Term Emergency Savings, Mortgage Debt, Ability to Retire at age 62, Charitable Giving and Your Net Worth. Your Freedom Score shows your ability to grow your money and your FICO score shows your ability to buy and dance with Debt. The FICO score is a false measure of hope that needs to be exposed. Learn to build wealth for yourself…not your bank or lender. For more information on your Freedom Score, contact us at [email protected]