Quote:
Originally Posted by Lebell
I think everyone should note one important thing:
If you never use credit, you will never build it up, and you won't have it if you really NEED it.
My suggestion (which I follow better than I used to), is to have one or two cards and occasionally use them for small and big purchases (key word, occassionally) and then PAY THEM OFF IMMEDIATELY.
This way you will begin building a credit history of being a reliable person and when you WANT that CAR or HOUSE, you will be able to get a loan, and at the lowest interest rate available. (Higher risk individuals pay higher interest rates on loans.)
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Credit cards don't necessarily help you build your credit rating. If you have 30 CC's and no balance, it negatively affects your credit rating. You would be better off have a car loan or mortgage, those are the things that will build your credit, not using credit cards. The more you use credit cards, the higher credit risk you are, simple as that.