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Best Ways To Build Credit?

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    Best Ways To Build Credit?

    Okay, I know this is a more basic question...but the forums gets a lot of lurkers, so I'm asking partly for their benefit and partly because I just did a review of ways to improve ones credit score for an article I'm working on.

    What do you guys find has been the best way to build good credit?
    [email protected]
    202.468.6043

    #2
    1) Pay all of your bills on time/early -- never late.
    2) Don't carry high debt balances... Desirably, pay balances in full, and never carry a balance month to month.
    3) Repeat steps 1 & 2 for 10-15 years. Long-term good behavior with debt is the only way to get a high credit score.

    Note: The above strategy for a high credit score (780+) is radically different than how you repair bad credit. To repair credit, you need to:
    A) Get current on all of your bills
    B) Repay or settle old, bad debts (stuff in collections)
    ​​​​​​C) Pay down/pay off all of your debts
    D) Avoid accruing more debts at all costs
    E) Follow steps 1-3 above.

    Alternately, just don't bother worrying about your credit score, and just avoid debt like the plague. High credit scores tend to mean you've paid alot of money in interest (mortgage, auto, credit card, student loans, etc). I'd just as soon prefer the "100% cash down" strategy. No payments, no interest, just financial security. Yeah, I like the sound of that.
    Last edited by kork13; 03-05-2019, 08:18 PM.
    "Praestantia per minutus" ... "Acta non verba"

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      #3
      My credit is excellent in spite of the fact that I've never made it my primary goal to have good credit.
      I think that having a good credit score as your primary financial goal is misguided.
      If you have good financial habits, don't pay your bills late, and don't have too much leverage, then your credit score is naturally going to rise and be healthy.
      Brian

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        #4
        Originally posted by bjl584 View Post
        My credit is excellent in spite of the fact that I've never made it my primary goal to have good credit.
        I think that having a good credit score as your primary financial goal is misguided.
        If you have good financial habits, don't pay your bills late, and don't have too much leverage, then your credit score is naturally going to rise and be healthy.
        My thoughts also.
        Never worried about my credit score.

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          #5
          Good credit. Hmm let's see here.

          Rule number 1. Pay bills on time.

          Rule number 2. Don't forget rule number 1.
          How can you have any pudding if you don't eat your meat?

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            #6
            Are you asking about people who are young or new to the US and have no established credit record? Or people who have a poor credit rating and are trying to improve it?

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