These are the Commandments of Credit. They are maxims that I refer to again and again in my posts here. They have been developed over the years as I have repaired my own credit and climbed the credit ladder, and helped others do the same.

Read these rules. Read them again. Read them until you have them memorized. Repeat them to yourself throughout the day. And most importantly, follow them.

Do this and you will prosper.

Credit Cards

• Use credit cards as a convenient way to buy things you would buy anyway.
• Credit cards are NOT a way to bring future consumption forward, i. e. to finance large purchases by “buying now and paying later.” The interest will kill you.
• Pay off your balance in full every month. Automate this so that you are never late with a payment.

 Debt Collectors

• Do not talk to a debt collector over the phone, ever.
• Refer to the rule above.

Mortgages

• For a house you intend to live in yourself, take out a 15-year fixed-rate mortgage. If you are unable to do that, take out a 30-year fixed rate mortgage.
• Do not ever take out an adjustable-rate mortgage.

General

• Whatever you’re doing (especially online), assume someone else is watching.