Without a doubt, your credit score is the most important thing that comes into play when applying for a credit card or a loan. For this reason, maintaining a good credit score is very important. It is normal to be stuck at a certain level of credit score for many years. Even if you’re making your payments on time, not opening a new credit account can result in this. More on how you can increase your credit score can be found here.
For starters though, building a credit score is much easier than someone who’s had bad credit. Most people start building their credit score at 18 and wonder how much credit they have at 18. This is an easy question to answer. When you’re 18, you don’t have any credit. That’s of course unless you already had a credit card or a loan in the past.
Building a Credit Score
When starting to build credit, you should look for credit cards. This is because you won’t have much success to get loans without any credit. A credit card is always going to be the best tool to build credit.
There are lots of credit card companies that offer secured credit cards. The secured credit cards require you to place a deposit. Even if you have bad credit, you can use a secured credit card to rebuild credit. Depending on the deposit amount, a new credit line will be opened to you.
From there on, you will establish a credit score. The most important thing is to make your payments on time. It is very important to make your credit card payment on time. Every one of your payments will affect your newly built credit score.
The best tip we can give to build a credit score is to keep your balance as low as possible and make your payments on time. Spend as much as you can on your credit card to a level where you can pay your balance. This way, you are most likely to qualify for better credit cards than you got with a deposit.
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