Opt out of tradfi?
Our only installment payment is a mortgage on an investment property to a private lender. We have 1 credit card that we pay in full every month. The has lowered our credit score a little. Probably no consequence for us but might help understand how the system works if you might need to access credit from a traditional dource.
Collin Harness
@harnessmoney7 Ways To Increase Your Credit Score
You could go your entire life without using credit. Pay for everything in cash. But most of us will need to use credit at some point in our lives. You may need to buy a house or a car or pay for medical expenses. And with the way that real estate prices are going most of us would never be able to afford to buy a property without the use of debt.
It is important to know the difference between good debt and bad debt. Don't get caught under a mountain of bad debt.
There are many advantages of having a good credit score. Mainly, you will get the best interest rates on loans from a bank with the highest credit score. You will be able to refinance easier.
Landlords run a credit check before they will rent an apartment for most people.
Most people run into trouble, because they were never taught about credit or a credit score and they ruin that score before they even figure out what it is.
Most banks now allow you to check your FICO credit score so take a look and monitor it over time.
1. Increase your credit limit
The more access to credit you have the better your utilization rate will be. Always be working to increase your credit limit in case of emergency.
Don't pay to keep a line of credit open. Fees will kill your wealth so only keep lines of credit open that do not cost you anything. If it is costing you money and the perks are not worth it then close down that line of credit.
Call you credit card provider and see if they will increase your credit limit.
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