Build Your Credit
While Saving Money

You can build credit without ever paying interest. This is done by careful use of credit cards and by using certain utilities.

Credit Cards

Credit cards have traditionally offered a no interest grace period whenever the balance is paid in full. Why not use this grace period to your advantage. Many people even earn interest by investing their income until the credit card bill is due. Some of the wealthiest people use this strategy to leverage more wealth.

Buy only the things you need and pay with your credit cards. Only purchase what you would have paid cash for such as groceries, gasoline, and even utility bills. Then pay off the full credit card balance before the grace period expires.

Don't go overboard with credit cards. Two to four open lines of credit which consistently receive monthly payments will quickly build your credit. Remember, it is not the amount so much as the consistency over a year or two. You need to show a consistent balance and on time monthly payments.

Don't just assume there is a grace period. It is important to check the terms of your credit cards periodically. Credit card terms change from time to time.

Cell Phones, Rent Payments, & Utilities

Certain cellular phone providers and other utilities may report to the credit bureaus. If so, your strong payment history will help build your credit rating. Not all companies report good credit though. Regardless of how good your payment history, it will only benefit your credit rating if it is reported.

Contact Josh if you have paid your utilities or other bills on time and are still light on credit. With a special technique, they can sometimes be added to your credit report to help you qualify for a better mortgage loan.