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Why I Wrote this Blog AND Why I Should Not have Writtten It

I have helped several friends with their credit scores.  It is really easy to get started and build a good credit score.  It is also really easy to Mess Up your Credit.  A friend who I helped with her credit recommended I write a book. 

How to Mess up your Credit
It is really simple to mess up your credit.  Get a credit card or loan and Miss One Payment by 30 days or more.  

Why I should Not have written this Blog

A good friend has sworn to never help anyone with their credit again.  He helped a friend (we will call him Johnny A.) who made about $25k per year.  This was several years ago.  Johnny had zero credit experience and no history and had been working for a couple of years. He was doing fine, driving his parents hand me down car with his own apartment and a little bit of money to spend.   

My friend helped Johnny A. build his credit. In a couple of months Johnny had a 780 credit score and a couple of credit cards.  He bought an expensive used car (BMW) for $20,000 on a eight year loan 6%.  

After the car purchase he received a couple more pre-approved credit cards.  

Since Johnny now had great credit he decided to buy nice furnishings.  He bought a fancy stereo, TV, Leather couch, dining room.  Before he knew it he had over $20,000 on his credit cards.  He was maxed out.  $40,000 in debt on a $25,000 per year income.  It happens so quickly.  

Then his used BMW needed a major repair.  He was so broke he went back to driving his hand me down car from his Mom.

Dave Ramsey has hundreds of stories just like this on his Youtube channel.  

If you develop good credit do not blow it buying depreciating assets.  Only borrow money to Make Money or to buy a house---Rick's Rule of Credit.

My rule for my credit.  
There are only two reasons to use credit.  
One is to buy a house and the other is to make money.
Any other use of credit is living beyond your means and will lower your standard of living quickly.

Please do not use your credit to overspend.

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