Money, it’s a touchy subject, and finances in any sense (or cents, haha) can be difficult to grasp for a plethora of reasons. It took me a long time to understand that a credit score wasn’t something that just happened and even longer to make myself accountable to that proverbial number hanging over my head. Crazy how a magic little number can be the difference between experiencing a major “adult” milestone or being jettison back into adolescence. Here are some things I’ve learned along the way to help you avoid the latter.
Ignore Boys, Not Your Bills…
In my opinion, the biggest hurdle I had to jump over was my embarrassing lack of knowledge and the sheer willpower I exerted to maintain that ignorance for several years. I would get credit cards and disregard the monthly payment as if it were optional which naturally got me into some trouble. I racked up a massive amount of credit card debt within my first year, so much so that I couldn’t get another one, or a loan, or a lease, or an apartment for years. My point is to pay your bills and pay them on time, it seems like a simple concept but so many of us falter on this basic step. If you have the means it is always best to pay above your minimum to stay one step ahead.
Organize, Organize, Organize…
It might seem OD but I have a spreadsheet for my credit card bills equipped with a formula that tracks my overall credit utilization. The goal is to use 30% of your available credit in order to achieve a higher credit score. I have payment dates, auto-pay dates, amounts, and accounts all neatly tucked into one place that I update monthly. It helps to keep me on track and in control of remaining balances, as well as my available credit. You can view a copy by clicking here. If you don’t understand the formula bit just reach out and I’ll be happy to talk you through it.
Get On The Phone And Talk…
I know phone calls may seem like a thing of the past but when it comes down to it speaking to someone will save you $$$ in the long run. If there’s a fee on my debit card 10 times out of 10 I am calling up the bank and asking for a refund with persistent. It might make you feel out of sorts to pester but this is your money and the banks (employees included) are not your friends. You don’t have to go in guns blazing you can be polite they usually are quite accommodating. If you find that you’ve used up “your refunds for the quarter” or whatever it is they say you can always throw a hardship in there for good measure. If it seems a little dishonest well that’s because it is but cmon this is capitalist America, right?
And Talk Some More…
In addition to calling my banks on their bs, I call every single one of my credit cards about every six months to lower my APR rates. APR rates are those pesky little percentages you see at the bottom of your credit agreement when you first sign up for a new account. They may seem harmless but they are anything but, that’s the price you’re paying for borrowing money. And while it may say annual it’s actually taxed onto your account each month if it’s not paid off in full, increasing your remaining balance.
Late on your credit card payment and now you have a fee on top of your minimum payment? Well, dust off your yt people voice its time to make another phone call to your creditors. This one isn’t that bad I’ve found that if you’re generally an on-time client the credit card companies will have mercy on you and waive the late fee. They’ll also remove the late payment from your statement which will keep your account in good standing when it’s time to check your credit report score.
Get Added To An Account…
Add yourself to an account of a RESPONSIBLE person with their permission, of course, no scamming guys. But in all seriousness, a great way to boost your credit score is to ask someone you’re close with to add you as a secondary on an existing account. It doesn’t mean you need a card or access to any part of their credit account you just need your name added. That way every time they make an on-time payment or receive a credit increase your score benefits in addition to their own. It really doesn’t have any benefits for the account holder besides the fact that they would be helping someone else out.
Ask Your Mom…
I’m not going to lie although I had to experience these things myself in order for it to really sink in, my mom told me all this when I was just a teen. She showed me her spreadsheets and told me about paying over the minimum but I didn’t listen as kids do. My mom has excellent money skills and it shows as she is able to do practically anything she wants all by herself. She kept our household together and held down the fine details of the finances entirely because my dad is well …… a little forgetful and a lot of skeptical when it comes to bills and banks. He refused to get a bank account for IDK how long and kept all his money in random wads around the house. Anyways maybe your dad is the financial finesser or your grandma or your aunty Shena, my point is to talk to your elders they have a wealth of experience and knowledge you can learn from. All you have to do is listen.