GOD'S WORD ON PAYING DEBTS:
- Proverbs 3:27 emphasizes the importance of paying back debts on time: "Do not withhold good from those to whom it is due, when it is in your power to do it."
DEFINING GOOD CREDIT SCORES:
- FICO scores range from 300 to 850, with a good score between 670 and 739.
- A very good score is between 740 and 799, and excellent is 800 to 850.
- Higher credit scores result in better interest rate offers from lenders.
IMPACT OF CREDIT SCORE ON LOANS AND INTEREST RATES:
- A higher credit score (740+) can significantly reduce interest rates on mortgages, personal loans, and credit cards.
- Example: Raising a credit score by 100 points (from 640 to 740) can save around $72,000 in interest over a 30-year $300,000 mortgage.
- A better credit score can also reduce interest rates on a $5,000 personal loan and credit card balances, saving substantial amounts over time.
ADDITIONAL BENEFITS OF A HIGH CREDIT SCORE:
- Higher credit scores can lead to lower home and auto insurance premiums.
- Employers may use credit scores in hiring decisions, potentially affecting job opportunities and income.
HOW TO IMPROVE YOUR CREDIT SCORE:
- Pay all bills on time and keep credit card balances below 30% of available credit.
- Build a credit history with a secured credit card, using it for routine expenses and paying off the balance in full each month.
ON TODAY’S PROGRAM, ROB ANSWERS LISTENER QUESTIONS:
- I'm 66 years old and disabled, receiving Social Security. I have only $15,000 to sustain the rest of my life and am looking for advice on how to manage this situation effectively.
- I have a pension and a 403B from my W-2 income, and I contribute to a SEP from my self-employment income. Should I continue matching my employer's after-tax contributions to the pension plan, or would it be better to invest elsewhere?
- What's your opinion on structured notes as a part of a well-diversified investment portfolio, especially ones backed by mortgages, considering they can be complex and have varying maturity lengths?
RESOURCES MENTIONED:
Remember, you can call in to ask your questions most days at (800) 525-7000. Faith & Finance is also available on the Moody Radio Network as well as American Family Radio. Visit our website at FaithFi.comwhere you can join the FaithFi Community, and give as we expand our outreach.
Remember, you can call in to ask your questions most days at (800) 525-7000. Faith & Finance is also available on the Moody Radio Network and American Family Radio. Visit our website at FaithFi.com where you can join the FaithFi Community and give as we expand our outreach.
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