I’ll admit it. Rule six in my book, 7 Money Rules for Life: How to Take Control of Your Financial Future is not my favorite of the seven rules. Honestly, I would much rather change “Manage Your Credit” to “Death to Credit, Live on Cash” and be done with it. But unless we can figure out how to turn back the clock a half century or so, that would be unwise—even foolish.
That leaves us with two choices. One, we can ignore the matter of consumer credit and just hope for the best (not a very good option). Or, two, we can take full responsibility for maintaining an excellent credit rating for the purpose of saving money and improving our financial intelligence and our effectiveness as money managers. We must opt for the latter because your credit rating plays a very important role in your financial health.
Rule six in its entirety reads, “Manage your credit rating to achieve a high level of creditworthiness.” Read this rule again, paying close attention to the words “credit rating” and “creditworthiness.” This rule does not mean going into debt, creating debt or taking on huge sums of available credit. Read more