Life in today's modern world has become credit conscious. Credit scores, credit history, and credit limits are synonymous with today's society. Despite this fact, many professional athletes have never been concerned about their credit during their career, because of the access to sums of cash. This practice may be fine for sustaining a comfortable lifestyle during the course of a pro athlete's career, but what happens when the glory fades and those large checks cease? Don't forget my credo...100% of PROFESSIONAL ATHLETES ULTIMATELY EXPERIENCE JOB TERMINATION! Your exit from sports is going to eventually happen and many pro athletes may be paying more for items put on credit than the average population because of not building a credit history for their future.
In order to understand credit scores, history, and limits it's important to understand the system credit bureaus use to decide your credit status. This information is extremely important as it will determine if and how much credit a loaning institution will provide, in addition to the percentage rate they will loan you the money. The following are the parts of the credit scoring system used:
PAYMENT HISTORY - Approx. 35%
AMOUNTS OWED - Approx. 30%
LENGTH OF CREDIT HISTORY - Approx. 15%
DIVERSITY/MIX OF CREDIT - Approx. 10%
NEW/OPENED CREDIT - Approx. 10%
Monitoring these components while looking to develop a solid credit history gives you more buying power when purchasing a home, cars, and in some states insurance.
At some point, credit will be an important aspect of a pro athlete's life. It is imperative while still playing to think ahead and begin the process of becoming financially sound while possessing a solid cash and credit balance to last a lifetime, not just during a career in pro sports.
To find out more about me, my book, and my services go to: www.fromglorydays.com
