Using credit cards responsibly can be one of the very best ways to earn good credit. The two most important factors in determining your credit score are your payment history and your credit utilization ratio, which measures how much of your available credit you have used. This means if you get a credit card, charge a little bit on it, and pay your bill on time, you’ll be well on your way to building a credit score you can be proud of.
Unfortunately, despite the credit-building benefits cards offer, many people are scared to use cards because they’re afraid of ending up in debt. This is a valid concern, since cards have high interest rates (averaging 21.19% right now). And it can be easy to lose track of what you’re spending and find …
Read the full article at: https://www.fool.com/the-ascent/credit-cards/articles/this-credit-card-trick-can-help-you-build-credit-without-the-risk-of-debt/