Published on August 08, 2023
It’s a fact that most of us will need to borrow money multiple times in our lives to afford an expensive item. Whether that’s a mortgage, college or car loan, or investing in a new business as a first-time entrepreneur, borrowing doesn’t have to be a stressful activity. In fact, it should be a part of creating a strong financial future and is the second step in the Choice Map program.
Perhaps the most important consideration when looking at your borrowing profile is your credit score. Community Choice allows members to access their credit score for free through Credit Score, Powered by SavvyMoney in e-Banking. But maintaining a high credit score and checking your credit report for errors is an ongoing process. By doing so effectively, you can often qualify for lower rates, saving you money.
Maintaining a high credit score can be a complicated process so our Choice Map financial advisors can help you:
Maintain a healthy debt-to-credit ratio
Set a credit score goal
Review and adjust as needed to your overall credit mix
Utilize your current assets to lower borrowing costs
Manage your borrowing portfolio wisely
The “Borrow” step of Choice Map is also designed to reduce high-interest debt so that you can more easily make payments on time. Automating payments can help your credit score since you’ll never miss a payment, allowing future loans to possibly be more affordable.
Debt itself if not bad – it can help your financial profile provided you manage your budget so you can afford to pay off any money that you borrow in a reasonable amount of time. This can include paying off a debt early. By using Choice Map to borrow in a logical, systematic way, you can still address your other short- and long-term financial goals.