Your 3 tips for credit (ignoring the most obvious ones)

[Cblough93]

Besides the most obvious suggestions like  paying your cards/bills on time.

If you had to give someone new to credit advice for improving their credit score but you could only give them 3 tips.

what are the 3 important/helpful pieces of advice you would tell them that someone new to credit wouldn't necessarily think of?

I believe mine would be:

- remember utilization has no memory, so if you charge a lot on your cards and you score tanks. It will recover very quickly. 

- creditors don't like to see too many new accounts, so let your account age, don't open more than 2-3 new cards in 12 months, don't waste inquiries and don't open new accounts unless you need them, and don't have too many cards in general. Also remember that some issuers are stricter than others about new accounts. So be aware of their specific rules like chases 2/30 and 5/24 rules. 

- remember credit is a marathon not a sprint, Rome wasn't built In a day, so don't stress about the small stuff. Like if you score drops for an inquiry or if your score drops cause your util ratio is too high. These are things that have happened to everyone at some point, so don't get discouraged. 

[MissLiz]

Utilization has memory in the 10T models which will be implemented (along with Vantage 4.0) by Fannie Mae and Freddie Mac in the 4th quarter of next year, so keep that in mind if you're planning for a mortgage. 

[Anonymous]

I would have no idea what is obvious or not to our latest generations. (Scathing comment)

And I feel oppressed and diminished at having a 3 tips requirement.

------------

• The Credit Does Not Belong To You: It is not yours, it is not money, you do not deserve it, and it can be given or taken back however they choose.

• Pay Your Bills on Time and In Full: Do not make charges against money you don't have.

• Use Credit Wisely: Only charge what you can afford to pay off in full each month.

• Set up Automatic Payments: Helps ensure you never miss a payment.

• Set Up Payment Reminders: Use calendars, apps, or automated payments to avoid missing due dates.

• Understand the Impact of Missing a Payment: Missed payments cost you money.

• Understand the Terms of Credit Offers: Read the fine print before accepting any credit offer.

• Stay Current on Loan Payments: For any type of loan, timely payments are crucial to not paying extra fees, fines, taxes, tariffs and blood lettings.

• Understand Credit Card Fees: Be aware of annual fees, late fees, and other charges.

• Utilize Alerts and Notifications: Many credit card companies offer alerts for due dates and spending limits.

• APR is 0% when you pay in full: Don't Carry A Balance.

[Gunnerboy]

My advice is about safeguarding and financial responsibility:

- Freeze your credit files.  Prevents unauthorized access and the extra step might make you rethink applying for tradelines or CLI's.

- Carry no more than two cards.  Have a workhorse/daily-driver and a backup.

- Before you charge it, ask yourself if you have the funds to pay (back) this in cash.

BONUS

- Be a transactor.

[markbeiser]

Credit card companies, and reality in general, don't operate on "Girl Math!"

TikTok is not a credible source for financial advice.

Don't buy stuff you don't need because of stuff you saw on social media.

[Snook_on_the_Line]

Sign up bonuses are fun.    
overspending to get one is dumb. 

[FicoMike0]

Ditto @Snook_on_the_Line 

Subs are 👍great!

All seriousness aside,

1. Open at least three no fee bank cards, do azeo, always pif.
2. If you have no installment loan, open a ssl.
3. Freeze everything, never app unless you're 95% sure of approval.

[Cblough93]

@FicoMike0 

How difficult is it to freeze your accounts and how exactly do you do it? I don't believe I see that option on the Fico app. I may have seen it on credit karma once or twice?

[FicoMike0]

Good question. Myfico doesn't help. You have to do it for each bureau. Here's a link for Equifax

https://www.equifax.com/personal/credit-report-services/credit-freeze/

The other two have apps you can also use. Regardless, you have to sign up for a free account on each, a bit of bother. I have the same user name (email) and password with each. I know, but I did it anyway and I wrote them down on my phone too. You log in, skip over their attempts to sell you something, get to the freeze page. It stays frozen into you unfreeze. They each will let you schedule a temp thaw. Maybe I choose to thaw now, through day after tomorrow. It will unfreeze in minutes, then, at midnight tomorrow (or 12:01) it refreezes automagicly.

Once you sign up and figure out how to avoid their offers for a useless paid upgrade, it's pretty quick.

[FicoMike0]

Another thing. If you want to app something and know which bureau they pull, only thaw that one. I did that twice with us b, thawed just tu, worked like a hose.