The Credit Score of Warren Buffet was recently reported to be a 718 by Fortune Magazine. You are probably wondering how in the world is this possible. He is supposed to be the richest man in the world.
When it comes to your credit scores it does not matter how rich you are, your credit score has nothing to do with how much money you have in the bank. No matter how much you have in assets, your credit score will always be determined by your credit history. The reason for Warren not having a credit score above a 720 could be for any number of reasons.
High balances on credit cards
Inaccurate information being reported on credit report
We know that wealthy people can have applications for loans turned down just like anyone else. That is why your credit scores are very important. You never know when you might need a loan, don’t let your credit scores get you denied. This goes to tell you that your credit scores speak louder than dollars.
How to beat a millionaire.
Here are some tips to increase your score; you never know a bad credit score could cost you that job that pays millions.
1. Never, never be late on your bills. The quickest way to lower a credit score between 100 and 150 points is to have a 30 day late on credit report. Set up on-line bill pay, that way you don’t have to worry about whether you are on time or not with obligations to your creditors. Unless you are rich, you will probably need a loan one day, and you don’t want a creditor to so no because of your score.
2. Limit yourself on how much credit you have. Don’t apply for ever credit card offer that comes. Typically you don’t need more than a couple of low interest rate credit cards.
3. Don’t charge up your credit cards like you are a Warren Buffett. To go out and max out your cards will cause a disaster for your future FICO score.