It takes years to stack up award-winning roles, just like it takes years to build a credit score that will reward you with a shiny credit card or loan.
Grab your popcorn, and consider how the following lessons can be
applied to your perhaps not-as-glamorous financial life:
1. Taking on a lead role can pay off, but not always overnight.
Just like Rome wasn't built in a day, most movies – and strong credit profiles – aren't either. This year, "Boyhood" became an award-winning sensation, honored with 140 awards, 127 nominations and counting.
The film took 12 years to produce, and the time obviously paid off. Putting in a similar time commitment to your credit profile may not land you in front of the mic on the awards stage, but it can make you feel like a winner in other ways.
Short-term credit fixes, such as paying off a large portion of a maxed-out credit card bill can quickly improve your credit score, as the payment will lower your credit utilization ratio – an important factor that plays into your score.
But the rich and famous don't get stars on Hollywood Boulevard overnight. It takes years to build up award-winning roles, much like it does to build a strong credit history with as few missteps as possible.
2. Not every lender will rank your credit as "best dressed."
Celebrities spend many hours and dollars preparing their appearance for each awards night, donning the "perfect" designer outfit, hair and makeup to look their best in front of the cameras. How viewers and critics perceive red carpet looks don't affect the awards granted that evening, but first impressions do make an impact.
Just like how viewers critique the best and worst celebrity fashion choices (think E!'s "Fashion Police"), lenders often have certain expectations for how they'd like customers’ credit scores and profiles to look.
For example, when applying for a mortgage, a high credit score may make you look stellar on the outside, but if you don't have what it takes (income, low debt load and a solid down payment) to support that new debt, the odds of winning that loan are slim.
On the other hand, if you’re applying for a retail credit card at the store that sells your favorite celeb's jeans, a good credit score will likely be enough to snag you a role as a store cardholder.
Not everyone will have the same opinions about your lending-worthiness, so if your credit's not awarded "best dressed," that doesn't necessarily mean it's in bad shape – you just might have to step up your accessory game the next time you apply.
3. There's always next year.
Even Hollywood big-shots get snubbed.
Each awards season, there are movies and actors who don't get the recognition many thought they earned. This year, several entertainment news reports claimed the Golden Globes overlooked actress Jennifer Anniston's work in the film "Cake;" others thought "Selma" wasn't honored enough.
While the actors and movies may have been received positively by audiences, the award nomination committees felt they still didn't have what it took to outshine their competition. The same logic can be applied by lenders determining whether to approve or deny a loan or line of credit.If you recently got rejected for a credit or loan application, don't fret. Celebrities brush themselves off and get back to acting, writing or directing after failing to take home a Golden Globe or Oscar. Follow their lead and graciously take what you learned from the experience to build your credit profile up to A-list status. Pay bills on time, and in full, and avoid maxing out your cards.
There will always be another award season, just like there will always another credit card or loan to apply to when your credit looks golden. Your Oscar may be right around the corner.
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