Gah! I’m listening to a blogger with a BA in journalism talk about how to improve your credit score.
The general advice was “get more than one credit card, use them, but don’t use them too much.”
Excuse the rudeness here but why are we listening to the advice of a journalism grad with no training in the industry except that of her own personal experiences?
On the other hand, why are you listening to me?
My education comes from working in retail, as an internal auditor for large companies, completing Dave Ramsey’s Counselor Training, doing some 1099 work for a financial advisor, and my own experiences as well.
I’ve never worked for a bank, financial institution, or took a college course on personal finances.
Isn’t my advice as useless as a news reported with no kids telling you how to raise your children?
The reason my advice is valuable to you
I’ll always tell you the truth. Not only will you read or hear rants like this one but I will blast the behind-the-scenes activities of those trying to sell you money.
You become a more educated consumer – and I empower you to avoid the debt trap!
My advice gives you options, something many Americans don’t have because they are drowning in debt. Debt steals options and kills opportunities. Just ask anyone who is working a second job to pay the bills or living paycheck to paycheck. It’s not fun.
OK, back to the bad advice
This “advice” from the journalist blogger was to help you build your credit score. Why? What is your reason to build a credit score?
It’s because our culture thinks you need a great score to exist in the United States.
I want you to make a list of every time you have used your credit score:
What. Are you back already? Why?
I know why: It’s because we don’t use credit scores – lenders do!
We are being taught all these “best practices for building your credit” tips so that someone else can make an easier judgement about us when we apply for credit. But you shouldn’t be applying for a bunch of credit – credit is debt.
Why do these well-meaning blogger journalists want you to improve your credit? Is it so you can get into more debt? Of course not, but they believe you need a great score to get the best interest rates. Some of that is true, having a higher score does qualify you for better interest rates, but you don’t need better interest rates when paying with cash or using your debit card to pay for things.
Shouldn’t I have good credit?
I wouldn’t go as far as to say you “need” good credit but you certainly should not have BAD credit. The entire credit scoring system is based on creditors sending FICO you personal banking information and reports of late or missed payments. You don’t want any late or missed payments – that’s what bad credit is.
You can have good credit by simply paying your debts and bills on time. That’s it. Why should you have to game the system and mess around with this “utilization rate” madness?
Did you know you could be creditworthy without having borrowed a dime in your life? Yep. Unless you just graduated high school or are still living under your parent’s roof, you have already proven to be responsible with money. How else could you pay for rent, food, gas, and other essentials?
Of course you want to qualify for a mortgage if you couldn’t pay cash for a house. I had to get a mortgage, but you can prove credit worthiness with a service called eCredable.
Learn more about eCredable http://MoneyPlanSOS.com/33
Thinking favorably about batteries
Are you a fan of batteries? My guess is you are impartial to them.
What if I could show you an easy way to make money selling Brand-X D-size batteries? Would you be willing to talk to others about Brand-X batteries in a favorable way? Of course you would. Suddenly you notice all the different batteries are used for. You look for ways to sell batteries. You bring batteries up in conversations at work or with friends. You find yourself using phrases like “These are great for running your kid’s toys” and “everyone needs a pair of D-size batteries around just in case”.
What changed? Suddenly you are a huge fan of Brand-X batteries because it impacts your pocketbook. Guess what? Reviews of credit cards on websites aren’t there out of the goodness of the webmaster’s heart.
Bloggers sell credit cards
I’m going to get a bunch of hate mail for this. Hey, I warned you that I blast the behind-the-scenes activities of those trying to sell you money. So here goes:
Why do you think bloggers post articles about credit cards on their website?
- They want you to get the best credit card
- They make money through affiliate sales of the card
- They make sponsorship money by writing a favorable review
- All of the above
The correct answer, in most cases, is D. Is that wrong for them to promote credit cards on their blogs? Of course not. Is it good for you? No way.
Bloggers who sell credit cards on their site are enchanted by the passive income. I would be too. It’s very tempting to sell credit cards on my website. Too bad credit cards are against my religion http://MoneyPlanSOS.com/135
Credit card companies need more people to use their brand of debt so they can make more money off of us. I can’t blame a blogger for wanting to sell credit cards on their site any more than I could blame you for your sudden love of D-size batteries.
We mean well
Be careful of advice from well-meaning people who have a dog in the fight. What’s in it for them?
A blogger promoting good credit scores by using credit cards responsibly isn’t breaking any conflict-of-interest rules. It’s not that they don’t care about your finances. They are simply promoting their belief about credit – and I’m broadcasting mine too.
It’s up to you to decide what is best for you. I’ve stated my case on this website numerous times. Now it’s up to you to voice your opinion.
Have you ever taken advice from a financial blogger? What happened? Good or bad, I want to hear about it. Please leave a comment below and let’s all share our experiences in order to help others make their own educated decisions. After all, it doesn’t take a finance degree to get a credit card or have a good credit score.