Thread: 10 easy tips for excellent credit and financial well-being

My intention here is not to brag, but to share some tips I've found helpful. My credit scores currently consist of two 800+ and one in the 790's... "excellent credit" by anyone's definition.

So here's a list of a few things to live by:

1. Live within your means
2. Try to use credit for cars, homes and student loans only
3. Set up automatic bill payment, or payment reminders
4. If you use a credit card, treat it like a debit card and pay off the entire balance every month
5. Only apply for new credit when you must
6. Forget about the Joneses... buy what you NEED, not what you WANT (until you have extra cash to spend)
7. Enroll in your company's 401k and maximize any available matching contributions
8. Build and maintain the cash equivalent of 6 months living expenses as a rainy day fund
9. Pay down loans as quickly as possible
10. Think before you spend: consider what else you could buy with the money you are about to spend, prior to making the purchase

Anyone have other good practices to add?

thanks for this post! very interesting and informative.

wouldn't it be nice to pay w/ everything in cash ...lol

4.If you use a credit card, treat it like a debit card and pay off the entire balance every month.
If we can pay off the entire balance every month, then you needn't to use a credit card.

I respectfully disagree, Bella. The whole point, to me, of using a credit card is to get the rewards that can come with responsible use. Whether it be cash back, 5% off on gas, airline tickets, whatever.

I personally try to *never* carry a balance on a credit card. If I do, it means one of two things:

1.) I'm out of work and in a money jam
2.) I've spent too much on something I could have saved up for and paid cash for (or paid on CC then paid my CC balance with cash)

This is how I choose to live my life, and it works for me. Others choose to use credit cards as actual lines of credit and carry balances all the time. I think that is extremely expensive and usually only finances "wants", not "needs".

I like your given tips but something like "treat credit card like a debit card" and "pay every thing in cash" is not possible in my case......
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Bad Credit Auto Dealer

Enrique- that is the case for most of us at first, but if you work at it you can get to that point. If not, then you are behind and will never catch up because you are simply spending more money than you earn. Good luck!

Hi...,

Really interested in your post..., The tips you have give is really appreciable... Thanks for sharing.. I hope this will help many more as me....

Ummmm actually not using credit cards is a terrible thing to do to your credit.
30% of your credit score is based on the balances of your credit cards and charge accounts. Another 10% is based on the diversity of your credit.
so baiscally without credit cards you are throwing away 40% of your possible POSSITIVE points.

Use credit cards but keeps the limits SMALL-
you do not get more points for large limit cards than you do for small limit cards just make sure to keep the balances on those cards below 30% of the limit at all times to maximize your credit points. Remember that the older your cards become the more points you get for them. New accounts HURT your credit so be careful not to close out old accounts unless you have to.

I agree it is very wise to live within your means and in an ideal way thats what everyone would do...however sometimes it just isnt possible as long as you remain in control of your credit cards and payments then use your credit that is available to you just always keep up with your payments..