Build Your Credit

For optimal credit, it is important to have three Trade Lines.  What are Trade Lines? They are simply companies or banks that you do business with on an on-going basis.

These can be bank cards, credit cards, department store cards, an auto loan, line of credit, personal loan or a mortgage.  The idea is to have at least three, have and use them for a long time and never be late and never be maxed out. (Best is to have balances at about 10 – 20% of their limit) or pay them off each month.

Getting and Using a Credit Card

If you choose a secured credit card from the list below, you will be “securing” it with a deposit.  Usually $300 – $500.

The more you can afford the better.  This will help you build credit faster.

Here’s how to use your credit card: Use it to buy things that you would normally purchase anyway, such as gasoline or groceries.  Only spend up to half of its limit.  So if the card is worth $500, never spend more than $250 in any given month.  Pay your entire balance off when the statement arrives.  Do that every month.