The road to financial freedom...

Let me begin by saying your mileage may vary. 

I bought a house last year which was one of the scariest things I think I've ever done.  Before I could do that I had to learn a life lesson in credit scores.  Admittedly my credit wasnt so great.  In fact, it wasnt even good.  Think low 500's  So before I could buy my house I had to clean it up.  I learned a few valuable lessons.  Number 1 being watch your credit.  You get a yearly report for free from the big 3 credit reporting agencies.  I found out I had some items on my credit report that didnt belong to me.  I tried and tried to get them removed to no avail.  Sent letter after letter and none of that worked.  Eventually I signed up for the respective 'credit monitoring' programs from the companies.  As soon as I was able I went thru my credit reports and disputed every single thing that was wrong.  In less than 45 days I had letters rolling in that item X, Y, and Z were removed.   Wow.  So for a total cost of $45 I had all sorts of things taken off my credit.  Its amazing what happens when you are a paying customer instead of just a number they keep track of.  So, consider that a cheap lesson.  Instead of wasting time writing and mailing and calling, just sign up for their program and get done what you need to get done.  I know it shouldnt be that way, but it is.  So in July I finally bought a house.  The $45 I spent on fixing up my credit was saved in interest on my house by an untold amount of dollars.  Saved 1.75% interest on $135,000.  Thats more than $45. 

So from July 1 to Jan 31, my credit score has gone up by a bunch.  From the low 500's to the high 700's in 6 months.  The thing that saved me was the fact I didnt have a pile of credit card debt and I still dont.  I carry a balance of $100-$150/mo on my 1 credit card.  It feels good to have good credit.  Its something to take very seriously as most of us finance large purchases.  It can mean the difference of hundreds of dollars a month in interest and assorted fees.  If you have credit cards, dont cancel them.  Just pay them off and let them sit as a cancelled card is worse than having a maxed out card.

So, a little time, a little money and credit repair isnt the worst thing ever.  It is however, a bad thing.