Book Review: Your Credit Score
May 21, 2009 by Miranda Marquit
Filed under Finance
With the passage yesterday of the Credit CARD Act of 2009, it is little surprise that the subject of credit is on my mind. And one of the most interesting and informative books on the subject of credit and credit scoring is Your Credit Score: Your Money & What’s At Stake by Liz Pulliam Weston. It’s an update of an earlier book, written in 2004. This newer version goes in depth into this important number, and offers the facts about what you can do to improve your credit — and includes information on the new FICO 08, as well as practical advice for getting through tough financial times.
Pulliam starts out by explaining why your credit score matters, and continues with a history lesson, describing how credit scoring came to be, and why it is so prevalent now in every aspect of our financial lives — from jobs to securing insurance to getting a home loan. She also takes some time to describe how the credit scoring system works, as well as addressing VantageScore, a new competitor to FICO.
The bulk of the book, however, is concerned with the practical application of techniques, financial habits and practices that can help you improve your credit score. Your Credit Score even devotes a section to building a credit score when you don’t have credit. Pulliam offers step-by-step information that can help you resolve a number of credit issues, from mistakes on your credit report to reporting identity theft. She also tackles common credit myth that are continually perpetuated. This is, without a doubt, one of the most useful personal finance handbooks I have read recently.
I like Pulliam’s levelheaded approach to credit. She points this out: “You don’t have to live in debt to get a decent score, but you do need to use credit.” I enjoy her middle of the road view of credit. Pulliam doesn’t represent extremes. She simply offers you solid information and the knowledge you require to make a plan to improve your credit score and then keep it healthy.
Have you read Your Credit Score? Did you like it?
A debt management plan is one option for breaking free of unsecured debts. You would work with a third party who would get in touch with your creditors and work out a plan for you to pay back the money you owed over a period of time, usually with reduced payments. Once you have gone into the deal creditors will not be on your back for payments and if you stick with the plan you will have become debt free once the term of the plan has been reached.