Can Your Credit Score Sabotage Your Dreams?
Credit Score – these two words are probably the single two biggest roadblocks that prevent people from pursuing their dreams.
A credit score paralyzes people with fear. Why? Because we are taught early on that the single most important thing in life is to keep a “perfect” credit score. I was taught that as well.
Well, let’s probe this idea a bit further.
The reason why people want a perfect credit score is so they can one day pursue the American Dream: buy a house (debt), buy a car (debt), and secure a good education for their kids (usually also means debt).
I think this is humorous
The reason why I find this belief so humorous is that I too shared this philosophy for so many years. I had a perfect credit score of over 800 when I was laid off at 9/11, and then I started investing heavily into my own business. Once I lost the six-figure day job, I got behind on bills and hence no longer had a perfect credit score.
Banks will make you believe that if your credit score is below 600, you are not a good person – you are a bad person, a failure.
I have come to believe that is all bunch of bullshit! Recent studies suggest that 55% of American adults (0ver 110 million), have bad credit. Who cares?
As far as I am concerned, it is just a number. Today, bad credit is as common as having blue eyes or being born on an odd day of the month.
What is important?
I could care less what your credit score is. I am more concerned with the goodness of your heart than the number on your credit report. What a dinged credit score tells me is that you are an entrepreneur, a risk taker, a visionary, and someone who is trying to build and create something for the greater good of all humanity.
I do care about your visions, your goals, your destiny, and your higher calling in life. Those things are far more important to me when considering whether I choose to do business with someone. I am sure if you were to ask all of the entrepreneurs alive today about their credit history, they too would admit that it has been up and down over the years.
What I mean is that your credit score has nothing to do with who you are as a person, your level of success or failure in the future, or whether you are a caring, forgiving, honest, contributing member of society.
The opposite is true…perhaps having a lower credit score means that you have dreams, that you took action, that the successes didn’t come as quickly as you anticipated, you ended up getting behind on your bills a little bit. Big deal!
In the end you become an Affluent Entrepreneur worth millions, and hire all those people with perfect credit scores to work for you while you sit on the beach or travel the world and build your empire. Donald Trump has filed bankruptcy as a business strategy. Do you think he has a perfect credit score?
My point is that while you should do everything you can to meet your financial obligations, pay all of your bills on time and keep a decent credit score, don’t feel that if your credit score has been dinged, you are a failure. You are not. The systems that track credit are actually protecting you from buying things you really can’t afford and keeping you from getting more in debt.
The Affluent Entrepreneur is one who pays cash for everything and only truly buys things he needs! There are two exceptions:
- He can use OPM (other people’s money) as a tool to buy things he needs, wants, or desires.
- He can borrow money to purchase appreciating assets such as real estate.
This topic from my newest book “The Affluent Entrepreneur”, is one of the subjects that I speak on.
Please contact me the next time you need an Opening, Closing or Keynote Speaker.