How Do Credit Cards Help to Build Credit History?

Video Transcript

"Hi, my name is Peter Repak, I'm the owner of Clear Financial LLC, a debt negotiation company. How Do Credit Cards Help to Build Your Credit? Well, credit cards do help you to build your credit if you use them responsibly. What you really need to know about it, having debt, itself, will build your credit, regardless of what kind of a debt that is. You can purchase a car, you pay off the car, that will give you a credit score. If you have an apartment in an apartment complex, you're on time and you're paying responsibly, that can build your credit score. Purchasing something on a loan will build you a credit score. A credit card, will it help you? Yes, if you have one and you use it responsibly and you are not behind on your payments, it can help you to build a credit score. But watch out. Credit cards are really, really tricky. What you really don't want to have is have a bunch of 'em and spend just like crazy. What you really want to do is be responsible in it. It's extremely important, because once you have trouble the credit card companies are going to become your worst nightmare. My name is Peter Repak, I'm the owner of Clear Financial LLC, a debt negotiation company. Thank you for watching."