8 Credit Card FAQs and Tips to Build Credit

Money Girl answers 8 frequently asked questions about credit cards and gives tips to maintain and build credit.

Laura Adams, MBA
8-minute read
Episode #400

8 Credit Card FAQs and Tips to Build CreditHaving credit cards and managing them the right way is a very important part of your personal finances. They’re powerful tools that can help you build credit and improve your financial life.

But credit can be complicated and is often misunderstood, even by savvy people. In this episode, I’ll help you stay out of trouble by answering 8 frequently asked questions about credit cards, and give you tips to maintain and build credit..

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Why You Should Build Good Credit

The credit accounts you use, such as credit cards, loans, and lines of credit, lay the foundation for your credit scores. You must have active credit accounts in your name and use them responsibly over time to show that you’re trustworthy and ultimately build credit.

But even if you don’t plan on making any big purchases, most people don’t understand the role credit plays in addition to borrowing money. Not only does having good credit qualify you for low, money-saving interest rates, good credit also gives you:

  • lower auto insurance premiums (in most states) 
  • lower home insurance premiums (in most states) 
  • lower security deposits on utilities 
  • more rental housing opportunities 
  • better chances to get a job

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About the Author

Laura Adams, MBA

Laura Adams received an MBA from the University of Florida. She's an award-winning personal finance author, speaker, and consumer advocate who is a frequent, trusted source for the national media. Money-Smart Solopreneur: A Personal Finance System for Freelancers, Entrepreneurs, and Side-Hustlers is her newest title. Laura's previous book, Debt-Free Blueprint: How to Get Out of Debt and Build a Financial Life You Love, was an Amazon #1 New Release. Do you have a money question? Call the Money Girl listener line at 302-364-0308. Your question could be featured on the show.