Step 1, rob a bank. No seriously, get that credit score up. This is a vital building block to wealth. Have you ever seen a person/company successfully build themselves/itself without using credit? If you have, I can guarantee it was extremely difficult for them. Even our own currency system is built based on credit.
Starting while you’re young has a huge advantage, but it can be very tough. Most places won’t allow you to use credit if you have not established any credit. My advice to starting credit is to get something reasonably cheap based on your budget and pay it off. Another option is to get a credit card/PPC (pre-paid card) and use it for things you would normally buy throughout the month, then pay off the balance at the end of the month.
I unfortunately started to get very serious about my credit situation after I had already made some bad decisions. Fortunately, it wasn’t too bad and I didn’t have to file for bankruptcy. However, the thought did cross my mind. I could wipe the slate and not have to pay my debts but then I would have to divulge that information on any credit application. Instead of choosing to be tainted by a bankruptcy label, I chose to pay and settle my debts.
Needless to say, the foreclosure from 2008 (housing bubble) was never settled. All my other debts were paid in full or settled. If you try to use the settling method make sure to pick a fair price to settle with and stick to it. The good thing about repaying your debts is that while you make your payments, your credit actually begins to get better. It also feels great to pay off all your past debts.
Whether you’re starting or fixing your credit score, it is super important to have if you’re trying to obtain anything of great value. It’s never to late or too early, but starting this as early as possible will give you a huge advantage at achieving your goals of becoming wealthy or being financially free.
“You must gain control over your money, or the lack of it will forever control you.” ~Dave Ramsey
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