Mortgages and refinancing

Growing up, I was always told by my mom to at all costs avoid getting a credit card. Why have one? They do more harm than good, it’s too easy to get yourself into debt, if you have the money to pay up front, why not just pay for it? Don’t try to live beyond your means.

To me, that’s all sound advice. It makes sense. I certainly never wanted to get into debt and be paying off crap for years to come, and this was a time before companies and creditors focused so hard on a credit score (I didn’t even know what one was until my 20s), so I took her advice and never got a credit card.

It worked well for me for a very long time. I’ve never had outstanding debt or had to worry about not being able to make some kind of payment- but now, with the economy how it is, it seems that living on the money I had instead of borrowed money has done more harm than good.
I for a long time, had no credit history whatsoever, and then after some stupid medical bills, my credit score went from nonexistent to poor. In this day and age, it’s NOT good to have a bad credit score. It makes life very very hard.

It’s important now to not only build a strong credit history (yes, by getting credit cards and other things that count toward your score), but to keep a close eye on your score. If I had done a better job to begin with, perhaps now instead of looking into rentals, I could be looking to purchase a house instead. And then somewhere down the line, to save even more money, I would be owning a house that I would be able to do a loan mortgage refinance on and be saving even more money per month.

I need to get on top of my credit now, so that somewhere down the line that can happen- and we can finally live comfortably.

Posted on July 7, 2011 by Holdin' Holden 1 Comment
Holdin' Holden

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1 Comment

  • My dad told me the opposite when I was a teenager. He went and took me to get a credit card when I was 18 years old. He gave me stern advice about the credit card and I’ve got some great credit now. Teach your kids how to leave within their means WITH one and it’ll be a lot better for them in the long run if they use it properly. Until life threw me curve balls I would always pay my ccard of every month.