Congratulations!
A cautionary tale.
I am, I am sorry to say, a repeat credit offender. I have been through several credit boom and bust cycles over the last 30 years. I think I have learned my lesson. I hope so. And I hope others can learn from my mistakes. Of course, as I tell my children, some of us just have to learn things the hard way.
The way it has gone with me in the past is that during a period of bad credit, I would run mostly on cash. Eventually my credit would clean up. For awhile, I would be a responsible credit user. Then, one way or another, things would get out of control. My circumstances or income would change, I would have surprise expenses. Sometimes I would get busy with school, or work, or life and it would become easy to ignore my problems.
There are simple things you can do to safeguard your newfound financial wellbeing. Simple, but not easy.
* Start saving.
Lack of ready funds for emergencies begins many a financial downward spiral. The car needed repair. The bonus fell through. The tax bill was unexpected. And then you can't pay your bills.
If you've already started saving, increase it. Have as big a cushion as you possibly can. Many financial experts advise having 6 months' income in easily accessible funds.
* Pay everything on time.
I shudder to think how much I've spent in late fees over the last 30 years.
Personally, I like to pay my bills within a few days of the statement being issued. I like to have a cushion so that if I get busy, forget, lose track, I have plenty of time to sort it out before a bill is late. I use personal financial software, a spreadsheet, AND a log of major transactions, plus I access all my accounts online. I am sure there are much more efficient ways than my methods, and I am slowly streamlining. But efficiency isn't the goal, for me. Accuracy is the goal for me. Never ever ever be late. Ever again. Ever.
* Pay everything in full.
Or as close to it as possible. If I buy something today on a credit card, when it shows up in my financial software, I actually change the future payment of that card to reflect the new balance.
If you have a debt, like a car loan, try to pay ahead. Don't deplete your savings, but do what you can to whittle it down. Paying extra on a long-term loan is just about the surest investment there is, and the higher the interest rate, the better the return to yourself.
So, Mross, that's my story, and my advice. And I'm sure you're just fine and don't need it, but if it helps, then great.
Enjoy the car!
