Page 21 - increase your credit score

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The First Step to Good Credit:

Make a Budget

I want to take you back to my life a few years ago. I’d just gotten married and my wife

and I had $22,000 in credit card debt. I didn’t know what my credit scores were, but I can
guarantee you they were low because our utilization ratio was above 30% on nearly all of
our cards.

From a credit-scores perspective, I had a problem: My scores were low. Why were they
low? Because my credit card debt was high.

So, what do you do in this situation? First, take responsibility. My wife and I were

responsible for all the spending that contributed to our debt.

Second, figure out how you can boost your score. The beauty of pursuing good credit

scores is you’ll have to take action to get there, and that action involves sound financial

principles.

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