From the time I was a teenager, I dreamt of living on my own. I wanted my own apartment, my own car and I wanted to write my own ticket. It sounded like the perfect plan at the time. Little did I know, it wasn’t all it was cracked up to be.
Being an adult is hard!
First of all, buying a car with no credit is impossible. I had no idea that having zero credit is almost like having bad credit. I needed to build my credit to acquire what I wanted- my own vehicle. So I started researching ways to get my FICO score up. I found several different ways to do so but decided on the easiest, low balance credit cards.
It sounds scary at first but with a few pointers from my dad, I knew I could get my car.
One of the added bonuses of using credit cards was the ability to easily build my credit. I was able to achieve perfect credit just by buying small items and paying the entire balance once the bill came. I avoided the dreaded finance charges which was great since they can easily add up every month. I knew several people who built quite a lot of credit card debt by just paying the minimum balance each due date. I learned from their mistakes and vowed not to get myself in that predicament.
One of the biggest tips I can give anyone using credit cards is to closely monitor your monthly credit card statement.
Pay attention to any charges you do not recognize since identity theft is popular this day in age. Also, don’t buy anything with a credit card you can’t afford to buy with cash. Credit card debt is no joke and it’s not something anyone wants to have. Make sure you pay your entire balance every month. What you do now will either benefit or hurt you in the future when you try to make a big purchase like a home or vehicle.
After a few months of using credit cards to build my credit, I was able to finally be the owner of a nice used car. After a while, I realized that moving out on my own wasn’t so bad after all.
To this day, I still follow all the tips I listed and my credit score and lifestyle has benefited.
~Megan
Guest Writer for momDot
