Do you know people with bad credit? Do you happen to have bad credit yourself?
We often discuss here the concept of mindset. Run The Money was founded with the idea that it takes the same degree of discipline, mental toughness, and personal growth to succeed in both personal finance and living a healthy life.
I once saw a blog post or comment (can’t recall the source) that equated being in debt with being overweight. You’re in the hole with your money and you’re in the hole with your weight.
Well, if that’s the case, then think of your FICO score as your financial weight. Instead in this case, the higher the better!
In a recent U.S. News and World Report survey of 1,500 people with credit scores under 640, 35% of the respondents said they don’t do research before applying for a new card. While this might not be earth-shattering news, it does give a glimpse into the mindset of people with bad credit.
Rather than look for credit cards that charge lesser interest rates or have better terms, they don’t do anything. Then again, it’s not like those who do any research are hitting it out of the park. U.S. News also found that 60% of people spend “less than an hour researching fees, interest rates and terms and conditions when applying for a new credit card.”
WTF? Seriously? No wonder they have bad credit, right?
The survey findings give us a chance to delve into the mindset of these individuals. Bad credit comes from bad habits. So, I think it’s important to explore this and see what it can teach.
There’s always hope I believe. But, it comes at a price. That price is education, failure, correcting course, and putting in the hard (but very necessary) WORK.
Let’s explore this more deeply. Shall we?