The rhetoric around credit scores is that they “indicate whether a person is financially responsible.” The truth is, a credit score is a way to punish people who are already financially disadvantaged by charging them more for things they already can’t afford.
Still, your credit score WILL keep you from moving forward financially if you don’t find ways to increase and maintain it. So here are some quick tips on how I got mine to a reasonable number.
Pay your bills on time!!!
This is a no brainer. Make your bills your priority and allocate a specific amount of money from your income to be used for leisure spending.
Look out for my future post with some strategies that have helped me stay disciplined.
Stop Buying shit you can’t afford!!
If you have to finance it, chances are you can’t afford it. You’re doing yourself a disservice and collecting debt. Of course some things are necessities and make sense to finance, but before you make a purchase and finance it, ask yourself “do i really need this” and “will it take resources away from a bigger goal?”
Stop Maxing out Credit Cards!!
Credit cards make it easy to spend money you don’t actually have and be charged for it. I understand the temptation.
Credit cards are one of the easiest way to build credit, but also the easiest way to destroy it. Never spend more than a third of your credit limit if you don’t intend to pay the full balance. If the amount you owe on your credit card is more than the amount you have in savings, this is an issue.