Key Points For Building Credit
Your credit score is calculated using a mix of data, including your payment history, how much credit you have and length of credit history.
Here's the golden rule: Only charge what you can afford to pay every month in full.
Keeping your balances low will help boost your credit score. Aim to keep your debt utilization — which is amount of available credit you actually use — as low as possible.
There's no need to have a wallet full of credit cards, but having one or two that you use responsibly will help your score.
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Credit Card's Danger
Credit card usage can lead to debt and the debt grows itself while unpaid. However, used responsibly, it's a good way to start building credit.
Most credit cards also have other benefits, such as rewards points, cash back, or travel points. But if you're incapable of payin...
Credit cards
Carrying credit card debt is a great way to negatively compound your net worth. But credit itself is important.
Likely the biggest expense over your lifetime will be interest costs on your mortgage, car loans, student loans, etc. Having a solid credit score can save you tens of tho...
Factors that make up your credit score
- Late or missed payments will drive down your credit score and remain on your record for seven years.
- Credit utilization is the percentage of available credit you're currently using. If you use more than 30% of your available credit, scorin...
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