I am not a big believer in debt. It can prevent you from doing the things you want to. It can make it difficult to manage your finances and having too much debt can seriously affect your life in a myriad of ways. But then there are debts that make senses like purchasing a home or possibly buying car. And you need good credit to qualify for those loans. So how do you do it? How do you build a good credit history without getting yourself into a lot of debt, and becoming overwhelmed.
You can build your credit score with a small installment loan or using a credit card. But you shouldn't try to juggle multiple credit cards. And you should pay off your balance each month. Your credit score reflects whether or not you handle money responsibly and having too much credit card debt will definitely hurt you. Once you have established your credit history, you will not need to use your credit card anymore. You could also make the more radical choice of saving up and paying cash for your home. Though that will mean serious long-term sacrifice.
Do you think you need credit?
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