How to Invest When You’re Broke But Have Good Credit?

Making Your First Steps Into The World Of Investing

You have heard about the world of Wall Street, and now you fancy yourself as an investor of some kind. That is perfectly fine, but if you are financially broke, you might find yourself behind the eight ball when it comes to getting started. However, if you have a good credit score, you have fought at least half the battle.

A good credit score means that you have the option to borrow money at a good interest rate. You have more doors open to you in the event of a financial emergency. You have more flexibility to invest the small sums of money that you do in fact have.

If you can scrap together at least one-thousand dollars, you have the opportunity to start your investing journey. You can actually invest less than that, but you will want to start with something around that amount at least. Your best bet is to put that money into something that does not cost a lot in fees. In other words, you might consider getting yourself involved in what is known as a “no-load” mutual fund. That is a mutual fund that does not charge those who invest in it a fee for doing so.

The no-load funds are not necessarily as exciting as some other investments in that they tend to be pretty conservative. You might just be throwing your money into a basket of blue chip stocks or something similar, but at least you are getting started on your investment journey.

Credit Reporting Bureaus

Before you do any of this though, you must first check to see that you really are someone who has good credit. You can find thisĀ additional credit score info through one of the three major credit reporting bureaus. You see, what they do is produce the all important credit reports that so many rely on for examining your credit worthiness in the first place.

 

Those bureaus track your history with paying back the kind of debts that you have taken out in the past. From that track record, they compile the data and produce a three digit score that is known as your credit score. This score is incredibly important as it is a good indicator of if you are likely to pay back debts in the future. It is a good way for someone to tell how risky of a borrower you might be at a glance.

While your credit score does not tell the whole story of you as a person, or even your whole financial story, it is something that you have to concern yourself with nonetheless. If you are serious about starting to become an investor, you must first check in on things like this. You have every opportunity in the world to make a difference in your personal financial life, but you have to reach out and seize them.

You can take comfort in the fact that you are at least thinking ahead about these types of things. Just starting to invest at all is a big stumbling block for a lot of people. There are many who are simply not able to get themselves to put any money back. Those individuals end up on the short end of the stick when it comes to their investment results at the end of the day.

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