Your credit score is like your financial GPA—but let’s be real, most people have no idea how it’s actually calculated or what it really says about them.
You could have a score of 750 and still be paying way too much in interest, while someone with a 690 could be crushing their financial goals. How is that even possible? Because credit scores don’t tell the whole story—and relying on them alone is like judging a book by its barcode.
Let’s break down the truth behind the credit score mystery (in plain English, with a side of sass).
First of All… What Even Is a Credit Score?
Think of it as your financial reputation scorecard. It’s a three-digit number that lenders use to decide how trustworthy you are with borrowed money. The higher the score, the lower the risk you appear. And, the lower risk you are, the more they are willing to loan you some dough.
But here’s the kicker: your credit score is not a wealth score. You could be in debt up to your eyelashes and still have a decent score. Why? Because it rewards borrowing responsibly—not necessarily being debt-free. In fact, it doesn’t even know a peep about your wealth (more on that later).
The 5 Ingredients in Your Credit Score Recipe
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Payment History (35%) – Do you pay on time?
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Credit Utilization (30%) – How much of your available credit are you using?
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Credit History Length (15%) – How old are your accounts?
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Credit Mix (10%) – Do you have a combo of cards, loans, etc.?
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New Credit (10%) – Have you applied for lots of new stuff recently?
You can find more about the basics here at MyFICO
Notice what’s missing?
I gave you a hint above. There’s nothing about your income, net worth, or savings habits.
A woman could be making $200K a year, own a home, and still have a mediocre score because she paid a Macy’s card 3 days late in 2021. Another example, and this is a head-scratcher, she just paid off her auto loan! Yikes.
What a Good Score Can Hide
Here’s where it gets juicy. Despite a “good” credit score, it can still mask:
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Too much credit card debt
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Sky-high interest rates
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Dependency on minimum payments
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Lack of emergency savings
If you’re juggling balances and just making it work month-to-month, you’re not alone. But you deserve better than just “getting by.”
Real Talk: This Is Why I Wrote Own Your Finances
In my book, I share how managing your credit (and your debt) is so much more than just hitting a number. It’s about confidence, clarity, and control.
And there’s an entire chapter dedicated to managing debt like a boss, with simple strategies and money mindset shifts that can completely transform how you use credit—and how you feel about it.
Because here’s the truth: credit is a tool. It can build you up or break you down. You just have to know how to use it.
Want to Pay Off Debt Smarter (and Faster)?
That’s where my program, Debt Slayer, comes in.
It’s not just about paying off debt—moreover, it’s about doing it in a way that:
Firstly, it works with your real life
And it helps improve your score
In addition, it frees up your money for what matters most
For instance, whether you’re tackling credit cards, personal loans, or just trying to stay on track, Debt Slayer gives you the exact strategy and support you need to crush your debt for good.
💥 Say goodbye to guesswork. Say hello to financial peace.
Your Credit Score is a Tool—Not a Trophy
So the next time someone brags about their 800 score, smile and ask: “But do you feel financially free?”
Because credit is just one piece of the puzzle. Your true wealth? That’s in your habits, your mindset, and your courage to take action.