Tip! Because outstanding debt may taint a FICO score, try to pay-off balances on both revolving credit cards as well as other financial accounts. For the sake of appearances and the credit score, target bankcard debt to 60 percent with 30 percent towards installment debt.

Typically when people think of building wealth they are not focusing on credit scores but on assets, cash flow, and investments. Wealth is not quite so one-dimensional; it has a financial side to it, a spiritual side to it, and a credit side to it.

Most people are oblivious to the importance of their credit score until they experience a financial backlash. Home insurance rates are now tied to your credit score. Potential employers can use it to determine if you are good candidate for employment. And of course, some lenders won’t do business with you if your credit score is low and if they do, your interest rates are always high. I’m told some people are now paying up to 30%. OUCH!

Try to get a reasonable mortgage interest rate with a low credit score; it’s impossible. We refinanced our home and lowered our interest rate by 1% and it saved us $145 per month. Now swing the other way and you can see how a person purchasing a nice home with a higher interest rate attached to it could price themselves right out of the market because they couldn’t afford the payments; the interest payments.

Read more at Will Your Credit Score Make You Poor?

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