You credit score plays a vital role in your financial planning strategy. In fact, having a healthy credit score affects more than just your ability to apply for a mortgage or purchase a vehicle. It also impacts your long-term retirement planning goals.
Take, for example, you have a credit score lower than 600. When you try to apply for a loan or credit card, you may get locked into a much higher interest rate, which makes it difficult to make monthly payments and can take twice as long to pay off the loan. This means you have less capital each month to invest in your Roth IRA and/or 401k.
Another example is applying for employment. It’s more common now than ever for employers to run credit checks on job candidates. If you have a low credit score, this could prevent you from getting hired for a high-salary position that would earn you more money to make better investments for your retirement.
To help you understand and improve your credit score, you may want to consider hiring a professional financial planning advisor.
Financial planning advisors do more than help you plan for retirement. They help you understand your current financial situation and establish goals to address any issues that could prevent you from having a peaceful (and financially secure) retirement.
Your financial planning advisor will:
- Review your credit report with you
- Assess your finances and educate you on ways to improve your financial situation
- Help you create a budget plan
- Provide investment planning strategies that align with your long-term goals
- Meet with you regularly to ensure you stay on track with your financial planning
To help you find a financial advisor near you, contact Focus Financial. Our team of experienced financial planners in Minnesota are here to answer all your questions and help you achieve your financial investment planning goals. To learn more about our services, visit our website to discover how our team of advisors can help you prepare for the future.