Blogging on a Saturday night in Los Angeles. My life is a little slow these days! But it is helping my credit. How, you might ask? This is the second step in our conversation. It has been an expensive month. Kids had some unexpected medical bills and my house had some plumbing issues. How is me being home helping my credit? Because I am not charging up my credit cards. I have disciplined myself into charging only what I can afford. If I am not going to be able to pay my credit card in full, I will not use my card.

Building credit is very important. How are you paying back your bills? Are you leaving a balance on your credit cards? Can you manage your debt? You need to only charge what you can pay.

Secondly, you only want to charge a maximum of 30%to 50% of your limit. If you don’t charge anything, you are not showing that you can handle your credit. If you are on a tight budget, just use your card once or twice a month for small purchases like gas, a meal, or a few things at the grocery store. Do not max out your card! If someone runs your credit report at the time it is maxed out, your score will have taken a hit.

If you are in the Los Angeles area, it is easy to get caught up in the hustle and bustle of spending. Please, please, please, have discipline and spend BELOW your means. Till next time.