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No Credit or Bad Credit? No Problemo!

  • Jul 2, 2018
  • 2 min read

Building your credit can be a tricky thing to do, but moneybuddy says having good credit is crucial to your financial success. Have bad credit already? No problem! Just stick around because you’re in the right the place!

Lucky for you I have spent the last four years of my life trying to figure out and understand these so called "credit scores". So I know enough to say that having and maintaining a good credit score can be quite a challenge for most of us. So before I scare you off, I want to you to know that credit scores aren't all that hard to understand! Here are a few different ways to begin building a good credit history:

1. Start with only one credit card

A lot of first-time credit card users are prone to collecting too many credit cards when they first start off using credit. You should not make the mistake of opening up too many credit cards too soon. The more credit you have, the more you'll end up using them. And you'll get to a point like one of my good friends did, where it got harder and harder for him to manage paying off all of his credit cards on time.

2. Paying your credit balance in full

I used to think this was a bad idea because you want to show credit companies and lenders you're capable of payments right? But I learned that if you're only using your card to an amount you can afford to pay, you won't have a problem paying your full balance every month. And paying off your balance in full each month shows you'll have no debt and that you're capable of paying bills, which is what credit companies and lenders want to see.

3. How to carry credit card balance if you do have some

I also learned that having a credit card balance isn't always a bad thing as long as you do it the right way. I learned that it's good pay more than the minimum each month to pay off your balance if you do have some. One thing to keep in mind though is to avoid making late credit card payments and try to keep any balance at a decent level.

4. Paying your credit card balance on time

To maintain a good credit standing, try to always pay your monthly payments on time so they don't affect your credit score or get listed on your credit report. When you owe money this can negatively impact your score or sometimes even catch the attention of a debt collection agency. And you do not want debt collectors on your back because it reflects on how trust worthy you are to manage debt correctly.

 
 
 

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