What Would You Do With a Perfect Credit Score?
What would you have if your credit score was perfect? You would probably own your own home with a great rate on your mortgage, you wouldn't pay any interest on your car, and you would have big screen TV's in each room (that you only pay $25 a month for). Sounds pretty good, right? Of course it does.
Also, imagine what it would feel like every time that you applied for a loan or credit card and didn't have to worry what they are going to find. They would approve you as soon as they saw your flawless credit score, no questions asked. What a great life that would be!
If you're like me, your credit score isn't anything like that. We have to worry about whether or not we'll be approved for loans and credit cards. I pay out the mouth in credit card interest each month. I certainly don't have an American Express card. The thing that I have going for me though, is that my score is improving. Over the next few years my debt will disappear and my credit score will improve. What am I doing differently than everyone else? I manage my debt efficiently to knock a big chunk of it out each month without spending any extra money.
The method I use to get my debt paid back is by focusing my dollars in the most effective places to reduce the balance. I organized all of my credit card bills from highest APR to the lowest. I pay smallest amount I can on the low APR cards so that I have money free to pay the highest. This technique, paired with not using the cards for anything other than emergencies has knocked my debt down to nearly nothing.
If you feel that there is no way you could make any more than the minimum monthly payment (or even less) on all of your credit cards, debt consolidation may be the answer for you. If it's possible to take care of your debt on your own you'll be better off in the long run, but consolidation is certainly better than doing nothing at all. The use of a debt consolidator will remain on your credit report for years to come and your score won't be as high as it could without it on there.
The worst thing you could do (besides buying stuff with your credit card) is nothing. Whichever method you choose, be very proud of yourself that you took your credit and debt into your own hands. With patience and hard work you will be one of the few with a great credit score. You'll get the great rate on a mortgage, and you'll get the low interest rate on a new car, and you certainly won't have to worry when your credit report has to be reviewed.
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