Life was a lot simpler when what we honored was father and mother rather than all major credit cards.
Robert Orben

Bad things happen when your credit goes down the toilet. Even if you think you don’t need a good credit score because you aren’t going to buy a house, consider this; landlords and employers check your credit score as well. With a lower credit score you could miss out on a great apartment or a good rate on a loan. Check out these myths and tips to boost your credit score and gain some useful personal finance information.


Myth Number 1: It’s best to have no credit cards at all.

Having several credit cards is helpful in maintaining a solid score. After all, a lender wants to know that you can handle credit responsibly. Here’s the catch, have a few cards, pay them off in full every month, and don’t use more than 20-30% of your available credit.

Myth Number 2: Wealthier people have better credit scores.

Income has nothing to do with credit scores. If you are wealthy and don’t pay your bills on time, your credit score will suffer. Just because you have a big salary doesn’t mean you know how to handle your income or your bills. If you don’t pay your bills on time, you hurt your credit score.

Myth Number 3: You will have a poor credit score if you don’t have a credit history.

Starting out you will probably have a credit score in the 600’s, according to the founder of Credit Karma, Ken Lin (from an article by Mary Cornatzer of McClatchy Newspapers). He recommended those without a credit history (or a poor one) get a secured credit card, requiring a cash deposit. Use the card responsibly and pay the bills on time. Your score will rise along with the improved credit usage.

Myth Number 4: You must be in debt to have a good credit score.

On the contrary, those with credit scores above 800 have less debt than those with scores in the 600 to 700 range.


  • Have several credit cards, but don’t use more than 30% of the available credit on any one card.
  • Pay your bills in full and on time every month.
  • If you are drowning in debt, make a commitment now to get it paid off. Your credit score will increase as will your peace of mind.

Can’t Get Enough?

Read a bit more about Credit Karma at Bargaineering

Wise Bread has some great articles about improving your credit score

Free From Broke tells how An Excellent Credit Score Saved Him Money

Learn from PT Money where to get a Free Credit Report

 Action Steps

Get a notebook and label it: “(your name) Personal Finance” and keep it by the computer. Use it for all of your personal finance thoughts, activities, and plans.

Make today the day you look up your credit score; it’s free and this government website can tell you how to get a free credit report.

If your credit score is not where you want it to be, make a goal and take action towards a better score.

What are your tips for an improved credit score?


Leave a Comment

Your email address will not be published. Required fields are marked *