People that are just beginning to build a credit history come in different stages of life and having little or no credit history isn’t just something that is applied to young men and women. Buying on and paying off credit, paying off loans and other forms of debt payment all reflect well on your credit history, which brings about high credit score.
However, bad credit often follows people around throughout life and while there are ways to repair bad credit, getting off on the right financial foot is going to be key to not only avoiding bad credit, but maintaining habits that are conducive to good credit.
Buying on credit can be the beginning of trouble for many, but it is vital to building a good credit history. However, one good rule to buying on credit is to have the cash for the purchase on hand. This is counter to the whole point of buying on credit in many people’s minds, but credit card companies hope you don’t have the money to pay off your balance so that interest charges will pile up and they make more money.
While there are emergencies that require the use of a credit card at times, if you are looking to buy something particular and not necessarily vital, make sure you have the money on hand or in a savings account, ready to go when your credit card bill comes due.
By practicing small, common sense actions with credit cards, you will not only be able to build a good credit history, but also avoid a bad credit score.