Holicent
VIP Contributor
In the United States, credit scores are used to determine whether you are a good borrower or not. A high credit score will allow you to get loans at lower interest rates and help you qualify for the best financial products.
Having a bad credit score can mean higher interest rates on loans, difficulty refinancing your home and even trouble getting a job. When you have no money in the bank and little income, it can be hard to keep your score up. Here are some ways to keep your credit score high when broke:
Rent instead of buying a home. If you have bad credit or no money down payment, renting makes more sense than buying a house. With rent, you aren't making such a huge investment all at once, so there isn't as much risk involved if things don't work out between landlord and tenant. You can also move if needed without having to worry about selling the property first. Renting also gives you more flexibility than owning does because it's easier to pick up and go when necessary.
Don't use your debit card unless absolutely necessary. If you're trying to save money and avoid spending on impulse buys, using your debit card can be dangerous because it seems like free money that doesn't count against your budget. Make sure your bills are paid on time!
Having a bad credit score can mean higher interest rates on loans, difficulty refinancing your home and even trouble getting a job. When you have no money in the bank and little income, it can be hard to keep your score up. Here are some ways to keep your credit score high when broke:
Rent instead of buying a home. If you have bad credit or no money down payment, renting makes more sense than buying a house. With rent, you aren't making such a huge investment all at once, so there isn't as much risk involved if things don't work out between landlord and tenant. You can also move if needed without having to worry about selling the property first. Renting also gives you more flexibility than owning does because it's easier to pick up and go when necessary.
Don't use your debit card unless absolutely necessary. If you're trying to save money and avoid spending on impulse buys, using your debit card can be dangerous because it seems like free money that doesn't count against your budget. Make sure your bills are paid on time!