Day 20: Karma

I'm not here today to talk to you about cosmic forces or about how what goes around will eventually come around. I actually wanted to further what I talked about yesterday. One very important factor in getting out of debt is to manage your credit score. Ultimately this is what will decide if can get credit and how much the lending institution will allow you to borrow.

The past two years have been tough on my credit score! The key factor in fixing that is knowing where you stand. It is free to obtain one detailed credit summary a year through the major credit reporting agencies. I recommend everyone do this! There are also various websites that you can pay to see your current score (www.freecreditreport.com). I, however, have found the ultimate site that is truly free!

www.creditkarma.com

They have a wealth of information and useful tips. One function that I find very useful is the "credit simulator." This allows you to see where your credit would be if various positive or negative situations were to take place.

I can't stress how important this is to me and how much it can help you to make sure that you are doing the right thing. Check it out, you don't have a thing to lose and it is always nice to have Karma on your side!