When living better through chemistry does not work, sometimes you need retail therapy.
Last week I had a really rough day. I turned into a crazy person. I called my wife and she was at the Apple store. Now I have an iPhone 6 and I am much better. I understand the need for retail therapy and its benefits; furthermore, the more credit you have, the more therapeutic your retail purchases can be.
Credit increases your purchasing power. Good credit begets credit—the higher the credit limit or the more you can borrow. Good credit also begets better cost to borrow—the better your credit, the smaller the interest rate on your loan to pay back the money. It is good to have good credit because then you can have more things at lower costs to borrow to buy those things.
What if you have bad credit? :0
Bad credit does not have to be terminal. If you can talk, text, and chew gum, you can fix your credit score on your own. Here are some starting blocks to build your credit:
- Pay your bills on time every time
- No new credit – do not open new credit accounts or take out new loans
- Pay down large balances
- Make a budget and stick to it – you can use the free online budget provided by the Federal Trade Commission at http://www.consumer.ftc.gov/articles/pdf-1020-make-budget-worksheet.pdf