Here’s How You Build An Excellent Credit Score

Do you like free stuff?

Are you capable of paying your bills on time?

If so, you can earn hundreds (or even thousands) of dollars in free rewards every year — all by using credit cards responsibly.

This means 2–3% cash-back each month, multiple $200 sign-up bonuses every year, and other cool rewards like free hotel stays or gift certificates.

Doing this also builds up your credit score, giving you access to low-interest loans and reasonable mortgage rates. If you ever need to borrow money for a house, or want to lease a car, having good credit can save you tens of thousands of dollars.

Here’s how you can build an excellent credit score, starting from zero.

Zero To Excellent In Three Years Or Less

In January, 2020, I had no credit.

Like many people, I was under the impression that credit card users had to carry a balance. And that paying with credit cards forced you into debt.

This is false.

As long as you pay your card off on time, you aren’t penalized. There’s no interest payment, and anyone with basic budgeting skills can easily keep themselves out of debt.

Don’t go crazy buying things, and remember the payment due date.

That’s it.

As long as you have a card with no annual fees — there’s zero downside to this method.

Now, here’s the catch…

Building credit is a lot like playing a video game.

When you start playing a new game, your character is weak and doesn’t have the best weapons or items. And you have to play for a while before unlocking upgrades and better equipment.

Building credit is the same way.

If you’re starting from zero, you’re locked-out of some of the best cards (more on that in a moment) and there are a lot of scams or unfavorable offers being pitched to you.

In 2020 when I decided to start building credit, I was 26 years old with no credit history.