From early on, we've been sold the lie that you need good credit in order to get the best loan rates, higher credit card limits, etc. But honestly, you only need good credit if you plan on borrowing from someone. The whole "buy now, pay later" scheme is the reason why most of us have gotten into the financial trouble that we're in. So what's the antidote?
Save now, buy later. Why plan on borrowing from someone? Consumer debt has become such a part of everyday living that we don't even realize that it's not supposed to be that way. Our minds have been conditioned to accept the buy now, pay later credit philosophy because it seems as if everyone else does it. You're right. Everyone else that's in debt uses credit. We're supposed to have what we want, when we want it, whether we can afford it or not, hence the overuse of credit cards and loans. But God reminds us that we are not to owe anything except the debt of love (Romans 13:8), and that borrowers are slaves to lenders (Proverbs 22:7). If we are going to live free, we have to retrain ourselves with a Kingdom mindset (Romans 12:2), and get rid of the worldly, impulsive, credit driven mindset.
If you have credit card balances now, pay them off and build your savings for the things that you want. If you can't pay in cash or use your debit card, you should hold off. As we've discussed before, emergencies will happen, which is why you need an emergency fund. You don't need a credit card for emergencies, you need cash. Focus on building your cash fund, not your credit scores. It may seem odd, but we're talking about living free here. Think about the last thing that you charged and the burden that came along with having to make payments every month with added interest. Now, think about the last time you paid for something in full and the relief that went along with it? It's like a load was just taken off your shoulders right? That's exactly what happened to me the last time I paid off a credit card. Aaahhhh, what a relief.
If you're currently caught in the credit trap, commit to freeing yourself and never go back. You don't need credit in order to live free. Remember: Credit = Slavery, Cash = Free. I hope that you choose to live free.
Change requires action!