The best way to build your credit is the same strategy people use to build wealth

Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, but our reporting and recommendations are always independent and objective.It can seem intimidating to build your credit score, but it’s not hard to maintain once it’s established.Your credit is represented by a credit score, a three-digit number that gives lenders an idea of how risky you are as a borrower that fluctuates with credit-related activity, like taking out a loan or paying off credit card debt.Strategies like automatic payments, prioritizing your debt repayment, and spending within your means can help you build and maintain your credit.Building and maintaining good credit boils down to spending less than you earn and using the rest to get debt-free, save, and invest — the same general personal finance strategy that enables you to build wealth. Your credit score is a number between 300 and 850 that tells creditors your risk of not paying back a credit card or other loan. Think of it kind of like your high school GPA, but instead of helping you get into college it helps you get the best credit cards and interest rates. If you’re trying to build your credit, or maintain your credit, a few basic, impactful strategies can help you get up to 800 and beyond. Make minimum payments automatic The biggest factor in your credit score is your on-time payment history, so you should start by making sure that is perfect going forward. The easiest way to ensure you never miss a payment due date is to turn on automatic billing and payments using your bank’s bill pay or your credit card billing website. Related: 5 credit cards that offer free credit scores — and lucrative rewards If
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