Four Tips to Help You Build Your Credit Faster and More Efficiently

Repairing credit and maintaining good credit are topics we often discuss. What we don’t talk about nearly as often is building your credit. On my part, it’s easy to assume that everyone is around my own age and that you’ve already had years to build your credit and that it’s already where it needs to be. However, we know that some of you are still young and some haven’t had the opportunity to build their credit at this point. Because you are a blank slate and have all the best possibilities in front of you, you should know how you can actually build your credit in the most beneficial manner.

Good credit is more important than you imagine. You might think that good credit is good, but you have no idea how good it is until you realize that you’re saving money, or until you realize that it’s too late. These tips might help you build your score higher, better and more beneficially.

Don’t carry a balance

The best credit advice we can give you is not to carry a balance. Use your card regularly to show that you can and do use it, but pay it off in full every single month. Carrying a balance is the worst thing you can do for your credit, and it’s damaging.

Don’t carry more than 30%

If you have to carry a balance (emergencies do happen, we know), make sure it’s less than 30% of the total credit available. This means no more than $300 should be utilized at any point for every $1,000 in available credit you have on your cards.

Don’t keep applying

I know it’s tempting to apply for cards and credit everywhere you go, but don’t do it. It’s not good for your score, and it’s not going to help it. In fact, the more you apply, the better your chances of seeing your score go down are. This happens even if you don’t use the cards you just applied for.

Don’t spend what you can’t afford

When it comes to buying things like a car or a house and financing them, don’t buy what they tell you that you can afford. Look at the bottom line and budget. When you can afford to live your life, you can afford to pay off your cards and not rely on them for basics and necessities. Keep that in mind anytime you want to buy something using that credit card.

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