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Best Ways to Build Your Credit?


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    What are the best ways you have found/used to build your credit? Share tips and tricks here. I know the best way is to open up a good mix of credit accounts, get some debt going and then pay on that debt responsibly. Never missing a payment, as payment history is paramount.

    Annoying you have to get into debt to have credit. What kind of world are we living in? :| Anyways, anyone ever hit the famed 800+ credit score club? I've scratched the surfaced of the 780's at times, but can't seem to break into the 800's yet..

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    It is an odd conundrum having to get into debt in order to get a good credit score, isn't it?! I have finally paid off all my old credit card debt from my 20's and early 30's, but it took a lot of dedication and self control.

    I think the best thing to do is have some mixture of "good debt" (student loans, home mortgage, home equity loan or line of credit) and no more than three forms of "bad debt" (credit cards, payday loans) with the intention to pay off all or as much of that debt as possible each month. If you aren't able to pay off the "bad debt" each month make sure to pay the minimum payment each month because missed payments can seriously affect credit scores.

    Automobile loans can be tricky. If you have a good or great credit score then you can typically get a very low APR and therefore lower monthly payments, but if you have average or poor credit then the APR can be 6% or higher and could be getting into the "bad debt" territory.

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    I'm definitely in the club of having to acquire debt to eventually have good credit. It's part of the quid pro quo game that we play with credit card companies. CC companies and lenders are the gatekeepers to having good credit.

    My credit score was pretty bad after graduating college. I got my first job after graduation, and was able to get a credit card that required a $150 deposit to join. As years went on, little by little, my score increased to the point to where I was no longer holding my breath when getting approved for something. I would also highly recommend pairing your credit cards with an auto loan since it's a whole other type of credit, which could help you get a home loan one day in the future.