Posts Tagged: Blog

Here at Springboard, a former client was excited to tell us that her credit score was 723. That’s a respectable score, and much higher than she expected given her credit history. Another consumer who had recently been the victim of identity theft checked her credit and was ecstatic to learn that her score was right at 800, which is as high a score as anyone needs.

Unfortunately, they had both been misled. Their scores weren’t nearly as good as they thought.

For an individual, a debt ratio describes the percentage of your income that goes to debt payments. You’ll often see this described as a Debt-to-Income Ratio.

Your ratio is usually calculated based on your gross income. So if your salary is $3,000 per month, and your total debt payments every month are $300, your debt ratio is 10%. (3000 divided by 300 is 10).

When we educate consumers about achieving financial freedom, goals come up early and often. Setting goals is an essential early step for anyone who wants to achieve success, whether that involves financial, personal, career, spiritual or any other area of individual achievement.

Making regular monthly payments on your debts is the best way to improve your credit score, and late payments are the most significant cause of bad credit. That’s why we stress making your payments on time every month as the most important thing you can do to build a positive credit history as you work your way to financial freedom.