Positive Side Effects of Improving Your Credit Habits

Having discussed both the importance of your credit history as well as immediate steps you can take to improve it, it should now be apparent that good credit is both attainable and can save you tens of thousands of dollars over your lifetime.

There’s another benefit to improving your credit history, one that’s easily overlooked but maybe more important than any of the others. When you dedicate yourself to practicing the habits that build strong credit, you’re setting an example for your kids that will set them up for financial success once they become adults.

If your standard practice is charging things on your credit cards, paying the minimums each month, and letting your balances build, not only are you putting yourself into a financial hole and hurting your credit, but you’re teaching your children that that is the normal way of handling things. If instead you use your credit cards responsibly, pay your bills in full and on time, and save for purchases rather than going into debt for them, your children will see that as the norm and will have a much better chance of following suit.

Whether they like it or not, chances are that our children will grow up to be more similar to us than different. If your children grew up to have your current credit habits, would they be in good position for financial success? If not, what’s one thing you could change today that would put them on the right path?