The jolly old elf can give you a pointer or two about your credit score.
Taking a look at Santa Claus’ financial lifestyle is a good way to determine what his credit score would be, just as your financial lifestyle affects your credit score.
Your credit score is a numerical rendition of your credit report, a record of your credit behavior. Generally, the higher the score, the easier it is for you to obtain not just any credit, but the cheapest credit.
If Claus had a score it’d be 775 out of a possible 850, according to Credit Sesame’s theoretical analysis of how he borrows money and handles his debts
For example, that white beard tells you the guy’s been around for quite some time. The length of your credit history is 15 percent of your credit score.
Santa invented the twice-checked list so he isn’t likely to forget a credit payment. Paying on time is 35 percent of your credit score.
Thirty percent of your credit score is how much you owe. The higher your debt compared to your available credit, the lower your score.
Santa has a lot of potential debt – gifts for 7 billion people; wages and benefits for hundreds of elves to house; the cost of reindeer to stable, feed and keep healthy and a sleigh and other equipment to keep updated with the latest technology, not to mention North Pole commercial real estate for manufacturing, research and development.
Luckily, the man with a belly like a bowl full of jelly has deep pockets. If he can fly around the world and stop at every home in a few hours, he’s got enough magic to make money – though probably not enough to keep Mrs. Claus happy in the off-season.
You get the idea.
Take a look at how Santa’s financial behavior renders his credit score in the infographic below (click to enlarge). Compare it with your own. It’ll give you a clue about what you need to do to keep your credit score as high as tiny reindeer can fly.
Well, other than making money. You’ll have to earn that.