Ah, the credit score. It seems to be a sore subject for investors lately.

Every week in my inbox I get questions from people who want to buy real estate but they're not

sure how to get started and if you feel like your credit score holds you back from

reaching your financial goals then this video is for you. What the heck is a credit score anyway? Let's give a quick definition

about it. A credit score is a three-digit number that helps lenders predict how likely

a borrower is to pay back alone.

That's all it is.

It's like a stamp on your body for many, many years.

Your credit score is shaped by factors like

your history of paying bills in a timely manner.

How much total debt you have to your name.

How many lines of credit do you have open right now and how old are they?

Do you have multiple lines of credit that are open with a lot of debt associated with those

lines of credit? How much credit are you currently utilizing? Plus things like foreclosures,

bankruptcies, and accounts sent to collection agencies.

There are multiple criteria used by different companies to compile your score.

So while you might think your credit score is a certain number, it can actually vary based on the

scoring system itself and each system is different. A credit score is only important in the sense

that it's a piece of your financial snapshot that's really it

but so many people tie their own self-worth to a credit score and it really can

be debilitating for so many people they think of them they think of themselves as

that number and they think of their self worth tied to that

...