Why should I build credit?
You pay for everything in cash, you don’t want to acquire any debt, and you definitely don’t want to make the same mistakes you’ve seen others make.
So why should you build credit?
The short answer to this question is access.
You want access to money without having to sacrifice time.
When you save money, it has to build over time in order for it to accumulate.
When you work for money, you have to trade hours for dollars in the hope that you trade enough hours to equal a large sum of money.
So why do you want access?
Because you want more.
You want more peace of mind, more security, more streams of income, more options, more opportunity to live comfortably, more quality of life…
I was paying my phone bill and I was having a conversation with the gentleman who was settling my payment for me.
He mentioned that he needed to get a loan to get his landscaping business off of the ground.
He said he had no credit and had not seen any reason to get any credit until he decided to do more than have a job.
He didn’t see himself at MetroPCS for the rest of his life.
He wanted purpose.
I asked him, “Why wasn’t credit important to you before? Now you need it and you don’t have it.”
He said, “I just wasn’t interested in getting into debt.”
Good Debt or Bad Debt
When it comes to building credit, everything you don’t know can hurt you.
The common person who has no credit knowledge other than getting lots of cash fast by signing an application should not get credit.
If you don’t have a solid purpose for your credit and a strategy to accomplish it you will have bad credit debt and it can ruin your life.
I talk to hundreds of people each year who do not have a clear idea of what credit should be used for.
These individuals have used it as additional income, racking up thousands, and sometimes hundreds of thousands of dollars in debt.
But what if you can get all the money you need and the money pays its own debt back?
When you take out a loan or get a credit line and you have to shell out money that you make from your job to support it because it isn’t improving your quality of life, it is bad debt.
You should never go into debt without the debt paying itself and you.
This is Good Debt.
Good debt is a strategy converting your loan or line of credit into collateral toward the purchase of investments that create tremendous, perpetual profit for you.
Good debt is the difference between achieving your dreams and dreaming about achievement.
Have you ever heard of good debt? What are your thoughts about acquiring bad debt and are you looking for a strategy to protect yourself against it?