LogFAQs > #951180882

If you never have debt reported to the credit bureau there is no way for your credit to increase

So if you were just starting out, and you got a credit card with a limit, let's say about $500.

You went to use the credit card for gas only. You pay it off with your bank account the minute you use the credit card for this gas or other small purchases.

You always carry a balance of $0. Because of this, credit companies will never be able to collect data on you saying that you had a debt, and then paid it off.

Having a debt, and then paying it ESTABLISHES credit. Companies have to see you do this, though.

Consistency in making payments on time, length of time with loan/credit card, and total credit limit (the total amount of $$$ you have across all credit lines. Loans DO NOT go into this amount) BUILD your credit.

If you are playing the credit game, a healthy amount of debt to carry is 15%-20% of your credit limit. And its imperative to get new lines of credit halfway between a CC expiring.

If a home loan was the only thing you ever did, and you did fine with it, you could easily have a great credit score of 800 after 25 years. But once the house was paid off? You'd probably drop below 700 and have 0 average credit age.

This is why its important to get new lines of credit every 3.5 years unless you have multiple, manageable loans; it will keep your credit age looking good. Loans are super dangerous the longer they are because you don't know what will happen in your life, whereas Credit Cards are much safer because they're shorter term.

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I've grown.