Credit cards are necessary for those wanting to buy a house, phone, car, and other things. They can seem daunting because we're always warned about credit and how difficult it is to repair once we've damaged it. We're also told about how long it takes to build. Speaking of credit reminds me of the concept of trust, easy to destroy and hard to build (or build back once it's broken). Anyway, this is another blog about managing your credit card so that you have the best chance at getting your credit to a great place. Some of this information came from a financial expert at my local bank.
Start early – It's better to start earning credit as early as possible. I started around my second year in college. One thing that boosts your credit is how long you've had an account. The longer you've had it, it's better for your credit score.
Get three credit cards – I think this helps to establish responsibility. If you can manage three cards with no trouble, it makes you look like someone who's trustworthy and responsible. This doesn't have to be standard credit cards. You can also do something like a Macy's credit card.
Keep your accounts open – Again, time is on your side when it comes to credit cards. Try and keep your accounts open so that you can rack up points on your credit score.
Pay off more than the minimum – Even if you can't pay it off in full, pay more than the minimum amount. This will earn you more points on your credit.
Other advice – Put things like your Spotify or similar bills on the credit cards. These are small fees that are easy to pay off, while helping you to establish good credit.
Comments