Build your credit score and protect it. Your credit determines the monthly rates you pay for car insurance and interest on loans. Your credit score may determine whether or not you get hired for certain jobs or have the ability to rent. I see the results of poor credit because I sell homes. Personally my family has suffered wounded credit due to loss of income and health related expenses. Many Realtors and builders have seen drops and fluctuations in income in the last 6 years. Assuming that you are not currently in a financial crisis, here are 5 practical steps you can take to start increasing your score.
1. If you cannot get a major credit card then open a secure credit account by placing security deposit into the issuing bank. This is not the same as a debit card account. This is counted as credit issued. You want a card that reports to all three bureaus.
2. Exercise your credit by making purchases and paying off the card ahead of time each month.
3. Apply for major credit card account and repeat step 2.
4. Ask for your credit limit to be increased after a few months of timely payments.
5. Protect your credit by applying for a service that monitors all 3 credit bureaus and provides restoration services with attorneys in the event your credit is stolen. The top of the line service in my opinion does all of this for $15.95 monthly, and is run inside Kroll, Inc.
Do not take a sustained attitude that your credit does not affect you and your family because you live in a cash mode for a sustained period. You are most likely paying more than you need for goods and services with a wounded credit score.