Like many other people, I abhor bad debt. When growing up, I always pictured myself being financially stable by the time I was in my mid 20s. Of cause, the naivety at the time cannot be reconciled with the harsh reality at the moment. Wishful thinking characterized every aspect of my life. In short, at the time, it was easier said than done. This however does not mean that I have lost focus or don’t believe that I can lead a life free of debt. For a long time, this has been my philosophy.
However, credit scores and the whole aspect of credit rating has had an impact on how I approach some things especially those related to making me look good in the eyes of financial institutions. I am a firm believer that I don’t need to have debt to be seen as being credit worthy. In fact, to me, that is hogwash. I simply can’t fathom how on earth am supposed to have debt in order to be seen as reliable or capable of paying off bills. I believe that I can purchase anything on Amazon and still pay it using my debit card. Unfortunately, that’s not how things work.
Credit rating is a reality and if I am to get access to credit in the foreseeable future, then I need to be in good standing. My credit report should be a reflection of what financial institutions expect or else, my goose is as good as cooked. It’s perhaps this realization that set me onto the path of trying to jumpstart my credit report from the scratch. I had to make drastic decisions in order to ensure that I built a credit score that might come in handy in the foreseeable future. Not having anything in mind, I decided to take a loan from the bank against my own savings. Actually, this entailed putting aside some of my savings and then taking a loan against the same.
The idea was to simply pay the monthly installments of the loan without fail with the aim of ensuring that I get a good credit rating. This is an advice I got from an expert and I thought it might be good to try. Borrowing money I could handle against my savings ensured that I jumpstarted my credit rating. As I paid diligently and without fail, I managed to build up a healthy credit score. The good thing is that after clearing the loan, I could now access my money and use it for whatever I wanted. I also slept sound at night knowing that should anything come up and I needed urgent credit, I had a healthy credit rating to talk about!
Well, the truth of the matter is that sometimes we have to make unpopular decisions for own good. Seeking for credit we don’t need just to jumpstart our credit score might seem like a bad idea but it’s actually a good thing in the long run. It gives you peace of mind in the knowledge that you can be advanced credit without much of a hassle in the event that you need it. Like me, many probably find this a herculean task but it’s a necessary evil. After all, if you can’t beat them, then maybe it’s about time you joined them.