There is no shortage of blogs, and lists, and quick tips from every corner of the Internet shouting about how to improve your credit score. This isn’t one of those articles.
Yes, of course, there are things you can do to raise your score like make all your payments on time and avoid maxing out your credit cards. But most of the time, if you’re hyperfocused on manipulating your credit score, you may be focused on the wrong thing.
A Symptom vs. The Problem
If you are crazy focused on your credit score there is a good chance (not always, but often), that you are getting in over your head. Do you really need that much house? Do you need to buy right now? Do you have some debt you still need to deal with?
Focus On What You Can Control
Instead of wasting time and energy on your credit score, channel all of that attention into your budget. If you focus on being in total control of your money, budgeting smart, and consistently, your credit score will take care of itself.
There is a direct correlation between the time you use YNAB and your credit score. The longer you use YNAB and budget well, the higher your credit score will be, until it plateaus, somewhere in the neighborhood of Excellent Credit.
But, Why? But, How?
Well, YNABers don’t pay their bills late, because they are a month ahead. In fact, most of them have their bills set up on auto-pay.
YNABers don’t go into crazy debt for things they can’t afford or max out their credit cards. They prioritize and save, and when they buy something, they have the cash to pay for it.
YNABers don’t maintain a maze of cards and accounts or complicated financial workflows that beg for things to be forgotten, misplaced, or confused.
Focus on your budget. Remain vigilant about what you want your money to do, where it’s going, and that it’s always lined up with your priorities. When you focus on budgeting well, preparing for your future, living within your means, and spending on the things that matter most, the whole credit score charade proves pretty unnecessary.
Budgeting to the rescue, once again!
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