For people who are new to credit and trying to build a history there are many different options. It’s important to pay close attention because it can be easy to lose your way.
No matter if you decide on a traditional credit card or a secured credit card, it’s integral that you keep low balances, make a payment each month, and never miss a payment. You will be on your way to a great credit history.
Even though putting money aside in savings is a great idea, it won’t necessary have any impact on your credit score. Credit scores don’t recognize the amount of disposable cash you have on hand. The amount you have in savings doesn’t have an impact on your score.
Spending less can have an effect on your credit score, but only in terms of spending less on credit cards will it have a positive impact on your credit score. If you spend less on your credit cards then your balances will start to lower. This will effect your credit score positively.