Where do I go to learn about building my personal credit limits?

Question

Where the heck do I go to learn about how to build and maximize my credit lines/limit?

I always hear on bigger pockets podcasts or in books about how people build their credit and are capable of large amounts of available credit. These individuals usually talk about they never realized how important it was to build their personal credit-- the only problem is they never talk about how they learned?

How can I learn to follow in their footsteps? Are there helpful books? Most books about building credit seem to be for people who have damaged their credit. Mine is fine, I just want to maximize it... please help! :)

Lucky Henderson · Answer

Keeping credit cards at 10% usage is a good tip I was given

Lane Aakhus · Answer

I agree with everything that Scott E. said above.  I would just add that you can subscribe to a free credit report tracker like Credit Karma to track your score and monitor for inaccuracies.  I check my scores at least monthly just to make sure nothing odd is being reported.  The key is to utilize credit in order to establish credit.  Having various types of credit/debt (credit card(s), mortgage, car loan, signature loan, etc) with impeccable repayment history will eventually get your score to the 800+ range.  Be a little careful with how many hard checks you allow in a given time period and like Scott E said, don't allow you credit card balances to go or remain higher than 30%.  I just pay off all balances monthly as a habit.  Best of luck!

Glenna Wood · Answer

This may sound snarky but...

Learn Rule #1: Always pay your bills on time.

Learn Rule #2: Reread rule #1.

Scott E. · Answer

I have had an 800+ credit score most of my adult life (from ~25 years old through today) and I've followed a very simple strategy that an old coworker shared with me. I just carry 3 total trade-lines at any given time (These are in my own name. My businesses are in a ton more debt but that debt doesn't fall onto my credit report)

1. Credit Card. Sometimes I pay it off every month. Sometimes I let the balance roll over. But I never utilize more than 30% of my available credit.

2. Auto Loan. I don't buy new vehicles often but when I do I get a loan for as long as possible, and make that minimum payment (or just a little bit more) every month

3. Mortgage. Pretty self explanatory here. Mortgage on my primary residence, paid on time every month.

Not sure if there is any science to this. But carrying these 3 trade-lines has helped keep my credit strong year over year.