Over the past several years I have watched my credit rating improve. I remember the first time I got a credit card I was so excited that I went to the store and maxed it out. Not recommended.
It took me awhile to pay the money back but I learned two important things in the process. 1) I was proving myself to be credit worthy and 2) Credit cards should be used responsibly.
Ever since my first credit card/debt experience I’ve been super careful with my money and haven’t gotten myself in any sticky situations since.
I do want to eventually buy a home and some investment properties. That is why it’s important that I keep my credit rating in good standing.
To keep my credit rating in good standing I do the following:
- Pay my bills on time
- Keep a good available credit to debt ratio (mine’s probably too low)
- Occasionally use my credit cards (and pay in full)
It’s crazy to me that using credit is what keeps credit scores high. I’ll occasionally use my credit cards to try and keep my credit score from sinking. I know that there are others who use different type of debts to keep their credit scores high, like unsecured loans from Aspire.
In honor of credit ratings here is an infographic dedicated to the Superheroes with the worst credit ratings.
