Cause & Effect

The Law of Cause & Effect is always in play!

When it comes to credit scoring the law of cause and effect is definitely in play. Every little action has an impact on a person's credit score.

Recently I checked my scores while researching my newly released book, "Financial Folly". During one period in time I had no inquiries on one of my three credit bureau files. This "no activity" was the cause that presented me with my highest score among the three credit reporting agencies. On the second credit agency file there was one little inquiry and my score dropped "8" points. That eight point drop was the effect of one little inquiry. Wow.

On the third credit bureau file, I showed two inquiries in a 24 month period (the cause) and my score dropped "11" points below the zero inquiry score (the effect).

All of us must understand this universal law of cause and effect. Our credit actions will bring a effect. If we take good actions our scores will rise....if we make poor choices (the cause) we will see our credit scores drop (the effect).

My book, "Financial Folly" discusses seven smart financial decisions that people sometimes make (the cause), that will actually lower their credit scores (the effect). In fact, obtaining one of the books could be the cause in your credit score going up (the effect). You never know!

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