💰Build this before you actually need it

read time 2 minutes

Hi there,

One money lesson I wish everyone learned earlier is this: build your credit before you need your credit.

Most people don't think much about their score until they're trying to finance a car, rent an apartment, or buy a house. By then, it's a little late to start.

A strong credit history takes time to build.

The good news is you don't need to make a lot of money to get started.

If I were building my credit from scratch today, I'd keep it simple:

• Start with one credit card. If you can't qualify for a traditional card yet, look into a secured card.
• Put normal expenses on it. Gas, groceries, your phone bill, things you were already going to buy.
• Pay your statement balance in full and on time. You don't need to carry debt or pay interest to build credit.
• Keep your utilization low. Just because you have a $5,000 limit doesn't mean you have $5,000 to spend.
• Don't apply for cards constantly. Let your accounts age and build a strong history.
• Check your credit reports. You want to catch incorrect information before you're applying for something important.  

This isn't about chasing a perfect score. It's about creating options. Because one day, you might walk into a bank looking for a mortgage or auto loan.

Two people can borrow the same amount for the same purchase. But the person who qualifies for the better terms can potentially save thousands over the life of that loan.

That's why I see credit as another part of building wealth.

You don't build good credit so you can borrow more.

You build it so that when borrowing actually makes sense, you're in the strongest position possible.

Start before you need it. Your future self will be glad you did.

Using my affiliate link helps support my team and I to create new content for you every week. Thank you! 

- Milan and Team

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