Level 6
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Debt management

CC debt can be good to help boost your credit as well as some auto loans for people who are just starting out with no credit. You can do a secured card where you give the bank $200 and then they give you a credit card for $200 and then as you use it responsibly they up your limit and eventually you can get your money back.

Your credit score is factored off of how much of your credit balance you use. You want to carry a balance of less than 15% of your CC availability to get the best rating out of it that you can. So don’t spend you limit and make minimum payments that actually hurts your credit.

You only pay interest on your balance! So if you spend $50 on gas for the month in your CC but pay it off before your bill is due, you don’t accrue interest and you use your CC which is good for your credit.

Vehicle loans can also help build credit but you shouldn’t run out and buy a $20,000 car with a $20,000 loan. Save 70% of the car you want and then finance the remaining 30% it will help you have smaller monthly payments and help you pay it off faster and still have equity in the car. This will also help your credit. I’m 27 and have a 760 credit score because I pay off my credit cards every month and am never late on payments