You should avoid debt as much as you can, but using credit card wisely can help with credit score. The way I do it is by setting up automatic statement balance payoff for each of my credit cards online from my bank. I use YNAB as my budgeting software to ensure all my expenses can be covered with Cash, both long term and short term. So I always know I’m able to pay off credit cards in full each month. By paying off all my credit card balances a few years ago and using this strategy, my credit score increased from 632 to 800+. I still have Student Loans though which is another story and I’m trying to end that story as soon as I can. I also use credit cards that gives me cashback or airline points. So nowadays, I pay no interest to credit cards and instead get paid back for using them regularly.
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