The Easy Way to Build Your Credit Score Without Going INTO Debt

Is Dave Ramsey Wrong? He could be or he could just be slightly off. Obviously there are advantages to not going into debt. Such as not having to pay interest and having more free money each month instead of monthly payments. Does that mean you do not need a credit card? The answer is probably no you do need one. Dave Ramsey promotes an idea of getting a zero credit score. He says after two years your FICO score will just drop off. This is not true once you start your score it stays there for a very very long time.

In today's world a credit score is needed for just about everything buying a house, a car, setting up utilities, and even your insurance rates are affected by your credit score. So how do you get a good score without going into huge amounts of debt to do so?

First, You do need a credit card. Second, you need a monthly bill such as utilities or your phone bill. Third, pay your bill on time.

The easiest way is to set up the utilities or phone bill to be automatically paid with the credit card. At the end of each billing cycle you just pay the card off as you would have done if it was the utilities or phone bill.  This shows your interaction with credit and does not cause debt. Some people just cut up the card after that and dont use it or others just keep it in their dresser or you could keep it in your wallet. 

It is really that simple. You may never have the perfect score following this method but it is almost impossible to get a perfect score anyways.  I have been doing this for two years and my score is over 800. I only have a car loan and two credit cards that I use in this method and it has worked wonderfully for my FICO score.