How many times have you heard the story from friend and family about how bad credit has affected their ability to do things? They say, ‘I can’t go on vacation,’ ‘I can’t buy that,’ or ‘I can’t do that with you because I don’t have the money.’ And the thing is, it isn’t necessarily that they don’t have the money, but that they owe money to previous debts, so that even though they’re making enough money now to cover things now, they’re still paying old bills because they didn’t know better back in the day. To avoid putting yourself in this unfortunate but extremely common predicament, consider a few factors before it’s too late.
What You Need Credit For
First, think about what you need credit for. You need credit for housing loans, you need credit for apartment applications, and you need credit for major purchases like cars. Yes, there are plenty of companies that can help you get auto loans after having bad credit, but it’s much better for you to keep good credit from the get go. In your late teens and early 20’s, credit seems like the answer to buying all the things that you want, and worrying about it later. But that ‘later’ can really bite you if you aren’t careful.
How To Set Up Your Reminders
As far as reminders go, mobile technology and smart phone apps can be your best friends. It is easy to simply forget about when payments are due and what they are going to cost you in the long run if you don’t pay for things immediately, but if you install certain reminder apps, they can warn you if you’re moving too far outside your predictable budget considerations.
Budgeting Techniques To Help You Out
Consider following budgeting techniques that will pair up with the apps and reminders that you have installed as well. One of the best theories that you can follow to stay out of the bad credit situation is to only buy things that you can already afford. In other words, if you don’t have access to $25,000, don’t buy a $25,000 car! If you don’t have access to enough money, don’t buy the latest and greatest model computers. You may want them, and you may even feel like you need them, but the way to keep yourself out of trouble is to make sure that you earn the money before you spend it, instead of relying on you ability to make payments in the future. No one has a crystal ball, so even though you intend on having your great paying job for the next five years in order to pay for your expensive car, you never know what’s going to happen.