Keep Your 800 Credit Score With No Debt

One of the myths of having a good credit score is that you must carry a balance on your debt every month. This is not true. You’ll learn more about how we continue to maintain an 800 credit score despite being completely debt-free for two years if you read on.

How We Built an 800 Credit Score

My first credit card was a company card from Circuit City. My parents co-signed, and I ended up buying a $1,200 television on credit. It was a 32″ HD television that today could be bought for about $150 brand new. Financing a tv isn’t the best idea, but I didn’t know better at the time.

My next step was to open a credit card at my bank. Once I had established some credit, my bank was willing to give me a card with a $500 limit. I used this card exclusively for buying gas for my car for about two or three years.

We were paying all kinds of bills to pay back our debt. Creditors loved us because we had a lot of debt and were good at paying it back. Going into debt for the sole purpose of building a credit score is foolish.

How We Maintain an 800 Credit Score

Improving your credit score is relatively simple. Don’t miss any payments, keep your balances low relative to overall credit, and show a history of paying your debts.

We’ve done this by continuing to use our credit cards and paying them off at the end of every month. This allows us to avoid revolving debt while maintaining our high credit scores.

Not rocket science, I know. But, all it takes is monthly spending on your credit card to maintain a high credit score after becoming debt-free. It’s as simple as that. Our credit score is around 840 despite not having revolving debt. So, if someone tells you that you NEED to carry revolving debt to keep your credit score up, you should know that is not true.

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