Have you ever wanted to build a good credit score but felt stuck because you don’t have a credit card? There’s a clever trick you might not know a...
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Building good credit in your twenties and thirties is one of the smartest things you can do for your future. Think of your credit like a report card f...
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Think of your credit like a report card for how you handle money. It’s not for school, but it follows you everywhere as an adult. Lenders, like bank...
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Getting your first apartment is a big step. It means you are building your own life. But did you know your apartment can also help you build your cred...
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Let’s talk about building your credit history. You might have heard that you need a credit card to do it. But what if you don’t want a credit card...
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If you want to build your credit but don’t want a credit card, you have a great option. You can get something called a credit-builder loan from a cr...
Read MoreMissing a payment is one of the worst things you can do for your credit with a car loan. Even one late payment can seriously hurt your score and will stay on your credit report for seven years. The lender may also charge you late fees. It tells future lenders that you might not be reliable. Always set up reminders or automatic payments to make sure you never miss a due date.
The biggest things that hurt your score are paying bills late and borrowing too much money. If you max out your credit cards or are constantly late on payments, your score will drop. Other negatives include having too many new credit applications in a short time, defaulting on loans, or having accounts sent to collections. These actions signal to lenders that you might be a risky person to lend money to.
Ask utility companies (like your internet or phone provider) to report your on-time payments to the credit bureaus. If you have student loans or a car loan, paying those on time also builds credit. Becoming an authorized user on a family member’s old credit card can help, too. The key is showing you can manage different types of payments consistently over time.
Only charge what you can afford to pay off with the cash already in your bank account. Your credit card is not free money or for emergencies—use your savings for that. Pay the entire statement balance by the due date. This way, you avoid all interest charges and late fees while building a perfect payment history, which is the biggest factor in your score.
Yes, using too much of your available credit limit hurts your score. Even if you pay the bill in full every month, a high balance when the card company reports it makes you look risky. Try to keep what you owe on each card below 30% of its limit. For example, on a $1,000 limit card, try to keep your balance under $300 when your statement comes.
