Many people think that being frugal is a smart thing to do. In many ways, they are correct. If you do not spend a lot of money, you end up more able to easily save money. However, this can be somewhat of a problem when the frugality extends to never opening a line of credit or getting a loan. Borrowing and having open lines of credit are good ways to increase your credit score. If you never have a credit card, your credit score could be low even if you have not been irresponsible financially. However, there are credit repair options that may help you if you are in this situation.
In order to have a high credit score, you need to build a credit history. If you are so frugal that you have never borrowed a dime or had a credit card, you do not have much of a credit history. As such, in order to remedy this problem, you should borrow and get a credit card.
The first option for those with poor credit due to not having enough credit history is to borrow a small short-term loan. The reason this is the first option is that it’s relatively easy and simple to achieve. A payday loan alternative when you have bad credit is a good financial instrument for those wishing to generate positive credit history. Simply take out the loan and pay it back accordingly. These loans move so fast it’s possible to have funds available the next business day and have the debt paid off in a month. Given that there are a worryingly large number of bad payday lenders out there, it’s well worth doing your research and finding an alternative form of loan so that you will not be paying an insanely high interest rate, among other things.
With a low credit score, you will have fewer options in terms of getting a credit card, but there will still be options. You should shop around and find one that is right for you. When you are shopping around for a credit card, pay attention to the agreements that you would be signing. Pay attention to any interest rate that is applicable, as well as whether or not an annual fee will be charged for the credit card. Make sure you know what you are signing up for when you sign up for it, as signing up for a credit card that you are not able to make the payments for can actually end up achieving the opposite effect to what you are trying to do. If you have a credit card and fail to make payments on time, it will only lower your credit score even more.
Getting a credit card does not mean that you can no longer be frugal. There are many credit cards that have no annual fee that will not cost you any additional money, as long as you pay off your balance each month. Credit cards only end up costing you money when you have remaining balances after your payments or fail to make your payments. If you have a credit card, as long as you are responsible with it and make sure that you do not leave a balance on it at the end of each month, you can still maintain your frugal spending habits and not have to pay any additional money just for having a credit card. This way, you can boost your credit score without having to sacrifice any of your money in the process.
As you can see, you do not have to sacrifice frugality by getting a loan or a credit card. Getting a credit card is a great idea because it is convenient and will allow you to make purchases that you would not have been able to make with just cash or checks. Additionally, it can help you build a credit history and improve your credit score over time. If you have never had a credit card, it might take some getting used to, but you will likely see that it is a great option and makes your life much easier. If you are interested in credit repair options, this is a great one that you can consider that will likely not cost you anything at all as long as you’re responsible.
