Good Credit Habits to Build

If you’ve just got your first job, read this before your first swipe. In my first year of earning, I made every mistake the banks hope you’ll make. Swiping without tracking. Paying just the minimum due. Thinking reward points = wealth. Believing “0% EMI” was basically free money. And yes, I was a CA. No one teaches you this part of adulting. Especially when you think you're financially literate. What I learned the hard way: Credit cards aren’t the problem. It’s how casually we use them that becomes one. Here’s what I changed: ✅ Started treating my credit card like a debit card, if I didn’t have the money today, I didn’t swipe. ✅ Automated full bill payments, not just the minimum. ✅ Capped recurring spends like subscriptions and food apps that silently bleed you out. ✅ Reviewed every statement line by line, like I would for a client account. Now, I use credit as a tool, not a temptation. Because your income can grow. But if your debt is growing faster, you’re not building wealth. You’re building stress. Control your credit. Don’t let it control you.

Breaking the Fear of Credit Cards! I've had many conversations where borrowers avoid credit cards altogether or only have one, fearful of using it. On the other hand, I've read countless stories of Americans maxing out their credit cards, struggling to pay them off, and getting trapped by high-interest debt. Five years ago, I had no credit history in America. During a year-long immigration process, I was unable to work legally and had no income. But instead of letting that time go to waste, I focused on learning the system. I asked myself: - What is a FICO score? - How does it work? - What are the benefits of having a high score? - How do I build one? As someone who came from Italy, where we don't have this system, it was all new to me. But I studied and learned. I started with a secured credit card, putting down $500—a significant amount for me at the time, as I was earning only $8 an hour in my first job. I used that card for months, always paying it off in full. Eventually, I qualified for and was approved for an unsecured credit card. From there, I strategically opened new credit cards every few months, taking advantage of cashback and rewards programs that aligned with my lifestyle and spending habits. This approach helped me build a credit score of over 800—all while staying debt-free. If I could build my credit from scratch, so can anyone else! What about you? Are you afraid of credit cards? Are you using the system to your advantage? Do you know people who would benefit from a better Fico score? If so share this post to motivate and encourage them!

Question: “Sir, thanks for your note on how to become financially independent in America. I want to ask you Sir, is opening a credit card bad as many in our village community have suggested?” https://lnkd.in/e-MteCNW My Response: Having a credit card is NOT bad. What is bad is the illusion that a loan (yes, a credit from a credit card) is not a responsibility. So, instead of focusing on the credit card, focus on what the money you are getting via credit would be used for. In America, credit is part of the system, and you must NOT be fearful of running a life built on credit. But remember: after running, you count the miles, they say. If they give you a loan, that money must be repaid. That it came as a plastic card does not mean it is not US dollars! Let me share an experience which could help you. Many years ago when I made it into America, I sought insights on how to quickly get into the American financial system, understanding that there was no village to relocate to, if one cannot pay the bills (in Nigeria, if you become homeless in the city, you can move to your village!). I went to the foreign students office; they referred me to a woman, Maureen, in the account services. Maureen gave me a small book on building credits, and told me three things: -You must build credit in America. -To do that, since you just arrived from Nigeria, call your bank or a credit card company, and ask for a prepaid credit card. -Where possible, buy everything with that card, and at the end of the month, pay things off. Do not carry a balance! I did not have enough but I did send Chase $200, and they sent me a prepaid credit card. I did as she instructed; I picked an extra student job in the farm (Instrumentation Engineer, managing sensors and electronics in the university farm which covered hectares of land. Was an IT guy in a bank in Lagos). Within 3 months, Chase returned the deposit, and increased the card to $500. Then $1000, $5000, $20000, etc. Over the years, I have had a near-perfect credit score: hovering around 820-845 out of possible 850. And that has saved me tons of money because every bank considers me a low-risk borrower. With a good credit, where others are charged 21%, you can get the same credit at 6%. Finally, those telling you NOT to touch credit cards are not helping you because you must build credit if you want to unlock possibilities in America. What you should not touch is spending money with a plastic on an illusion that it is not USD.