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As an athlete, you know what it takes to perform at a high level on the field or court. Unfortunately, this often takes time away from other areas of your life, such as your personal finances.
Did you know that 80 percent of retired NFL players go broke later in life?
This is an alarming statistic that doesn’t just hold true among NFL players. Many other professional (and amateur) athletes find themselves facing financial difficulties after their playing days come to an end.
With all this in mind, athletes need to think long and hard about the many steps they can take to build a great credit score. This isn’t the only thing you need to do to achieve financial success, but it’s a good place to start.
Here are five things you can do today:
1. Get Help You Can Trust
There is plenty of help to be had, but you only want to trust your money and finances to those who have your best interests in mind.
You can turn to an organization such as the National Association of Personal Financial Advisors to locate a professional who can provide advice and show you the way.
Working with a professional is no guarantee that you will end up with a high credit score, but it doesn’t hurt your chances.
2. Make Payments on Time
Did you know that approximately 25 percent of Americans don’t pay their bills on time?
If you want to build a great credit score as an athlete, you need to implement a system for paying your bills on time.
Your busy life can make it a challenge to keep up with payments, but there is no excuse for falling behind. Remember this: it only takes one missed payment to harm your credit score.
3. Keep Your Credit Utilization Low
When you’re earning any amount of money, it’s easy to overspend on your credit cards. Unfortunately, this can work against you in more ways than one.
If you’re going to carry a credit card balance, do your best to keep the utilization rate at 30 percent of less.
So, if you have a $50,000 credit limit, you don’t want your balance to exceed $15,000.
4. Keep an Eye on Your Credit Score
It’s easy to fall into the habit of believing that your credit score will remain the same, no matter what you do. This isn’t true now and never will be in the future.
You should keep an eye on your credit score, as there are many things that can push this in one direction or the other.
As a general rule of thumb, review your credit score at least once a year. Along with this, review your credit report for errors that could be dragging down your score.
5. Avoid Opening too Many Accounts
If you’re in the habit of opening and closing accounts without thinking twice, you need to leave this approach in the past.
There are times when you may need to open a new account, such as if you’re planning a wedding, but try to keep this under control over the long run.
Opening too many accounts at once can lower your average account age, thus dragging down your credit score.
Conclusion
According to Lexington Law, there are many things to do if you find yourself asking “how can I fix my credit?” It’s important that you take the right action at the right time.
As an athlete, you are used to performing at a high level in everything you do. You should put the same passion into your finances as you do your athletic performance.
There is no sure fire way to build a great credit score, but a devotion to the process may be enough to get you moving in the right direction.
It doesn’t always come easy, but the five tips above will help you build a credit score you can be proud of.
What steps have you taken in the past to build your credit score? Did you do anything in particular to reach your goals? Share your personal experiences in the comment section below.