SERIES: How Do I Build My Credit? Part 2

"How do I build my credit?"

This is one of the most common questions I am asked.  In this series, I will be sharing various ways that one can build credit while still winning with money.

Part Two – Swipe Purchase And Immediately Pay Off

A great way to boost one's credit score is to obtain a department store credit card.  Here is how it works.

  1. Ensure that a small purchase from that store (something you truly need) is included in your monthly budget.
  2. Pull the money planned for that purchase out in cash and head to the store.
  3. Purchase the item with the department store credit card.
  4. Immediately after being given the receipt, tell the cashier that you want to make a payment on your credit account and give them the cash for the purchase to bring your credit account balance to EXACTLY ZERO.
  5. Do this once each month.

Your credit score will soar as the length of the credit relationship increases and as the balance remains at zero.  It might be helpful to go back to Part One to see what comprises of your credit score.

NOTE:  If you do not trust yourself with a credit card and controlling your spending using a written monthly spending plan, then DO NOT use this method!

Read the entire series 

1 Comment

  1. Grant Baldwin on February 4, 2009 at 8:08 am

    Step 6 – Take video camera to record cashier’s face after you pay for it with a credit card and then ask to pay for it again with cash!

    Great idea Joe!

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