Did you hear about Magic Number 2 or Rule 2-2-2?
This is the rule that helps to build an excellent credit score.
First 2. It's recommended to have 2 credit cards or 2 different types of credit where one can be a standard loan and another one is a credit card itself.
Second 2. Your credit cards should be in a good stand at least for 2 years. Know your due date, pay your balance on time and in full, and monitor your credit card account activity to ensure your balance doesn’t exceed your credit limit.
Third 2. Your credit card limit should be at least $2,000, otherwise, your card is not helping to build your credit score or it may take forever to build an excellent credit score.
Important! You shouldn't spend right up to your credit card's limit. Getting too close to the limit will negatively affect your credit score. To maximize your credit score, keep your credit balance below 30%. For example, if you have a credit card with a $2,000 limit, do not carry a balance higher than $600.
I hope you find these rules useful.
