Money Management

[[{“value”:”Image source: Getty Images
For a while there, it seemed like 5% CDs were here to stay. The Federal Reserve didn’t seem to be in a rush to lower interest rates, and many savers got to lock in CDs at 5% for a pretty long stretch.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. That streak may be over, though. The Fed has already made two interest rate cuts this year, and more are expected. At this point, 5% CDs definitely aren’t the norm.But it’s more than possible to open a CD in the 4% range. Whether you’re able to lock one in at 4.25%, 4.5%, or 4.75% will depend on your bank and the length of your CD’s term. But today’s rates are still quite competitive, so it’s worth it to check out this list of the best CD rates today.But while CD rates still look pretty good on a whole, I don’t plan to open one this month. I also don’t see myself opening a CD anytime in the near future, even though I know that might mean missing out on the chance to lock in a CD before rates fall quite a bit. Here’s why.When a CD doesn’t fit in with your goalsAlthough it’s tempting to lock in a CD somewhere in the 4% range, that return doesn’t work for me. Call me greedy, but I’d prefer to earn a much higher return than that.That’s why I’m putting my spare money into stocks this month. And you may want to open a top-rated brokerage account and do the same.Over the past 50 years, the S&P 500 has averaged an annual 10% return, accounting for years when stock values soared and years when they plunged. Investing in stocks is a dangerous thing on a short-term basis, because you need time to ride out market downturns. But since the thing I’m most focused on saving for — my retirement — is still pretty far off, it makes sense for me to put my money into stocks instead of settling for the return a CD might give me.In fact, I hope to be in a position to bank an extra $1,000 by the end of November (helped by the fact that I tend to be a holiday shopping procrastinator who saves the bulk of her purchases for December). If I open a 12-month CD at 4.5%, I get to earn $45. If I’m somehow able to earn 4.5% on a $1,000 CD I renew for the next 20 years, I’m looking at earning $1,411 on it.But if I invest my $1,000 at an average annual 10% return over the next 20 years, I could end up with $5,727 instead. That’s a much more appealing number.Don’t panic-open a CD before rates fallA lot of people I know are rushing to open CDs before rates drop even more. And if you have a near-term goal you’re saving for, then I’d encourage you to do the same.But if you’re talking about money you’re earmarking for a far-off goal, like retirement, then I strongly recommend investing in some shape or form. You could stick to a regular brokerage account, or open an IRA for the tax benefits involved if you’re specifically looking to save for your senior years.Even if you don’t end up snagging a 10% yearly return in your portfolio, there’s a good chance you’ll end up doing better than what today’s top CDs are paying. So there’s no need to settle for 4.5% or something in that vicinity when stocks may easily deliver twice that return, or even more.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

For a while there, it seemed like 5% CDs were here to stay. The Federal Reserve didn’t seem to be in a rush to lower interest rates, and many savers got to lock in CDs at 5% for a pretty long stretch.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

That streak may be over, though. The Fed has already made two interest rate cuts this year, and more are expected. At this point, 5% CDs definitely aren’t the norm.

But it’s more than possible to open a CD in the 4% range. Whether you’re able to lock one in at 4.25%, 4.5%, or 4.75% will depend on your bank and the length of your CD’s term. But today’s rates are still quite competitive, so it’s worth it to check out this list of the best CD rates today.

But while CD rates still look pretty good on a whole, I don’t plan to open one this month. I also don’t see myself opening a CD anytime in the near future, even though I know that might mean missing out on the chance to lock in a CD before rates fall quite a bit. Here’s why.

When a CD doesn’t fit in with your goals

Although it’s tempting to lock in a CD somewhere in the 4% range, that return doesn’t work for me. Call me greedy, but I’d prefer to earn a much higher return than that.

That’s why I’m putting my spare money into stocks this month. And you may want to open a top-rated brokerage account and do the same.

Over the past 50 years, the S&P 500 has averaged an annual 10% return, accounting for years when stock values soared and years when they plunged. Investing in stocks is a dangerous thing on a short-term basis, because you need time to ride out market downturns. But since the thing I’m most focused on saving for — my retirement — is still pretty far off, it makes sense for me to put my money into stocks instead of settling for the return a CD might give me.

In fact, I hope to be in a position to bank an extra $1,000 by the end of November (helped by the fact that I tend to be a holiday shopping procrastinator who saves the bulk of her purchases for December). If I open a 12-month CD at 4.5%, I get to earn $45. If I’m somehow able to earn 4.5% on a $1,000 CD I renew for the next 20 years, I’m looking at earning $1,411 on it.

But if I invest my $1,000 at an average annual 10% return over the next 20 years, I could end up with $5,727 instead. That’s a much more appealing number.

Don’t panic-open a CD before rates fall

A lot of people I know are rushing to open CDs before rates drop even more. And if you have a near-term goal you’re saving for, then I’d encourage you to do the same.

But if you’re talking about money you’re earmarking for a far-off goal, like retirement, then I strongly recommend investing in some shape or form. You could stick to a regular brokerage account, or open an IRA for the tax benefits involved if you’re specifically looking to save for your senior years.

Even if you don’t end up snagging a 10% yearly return in your portfolio, there’s a good chance you’ll end up doing better than what today’s top CDs are paying. So there’s no need to settle for 4.5% or something in that vicinity when stocks may easily deliver twice that return, or even more.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

“}]] Read More 

[[{“value”:”Image source: Getty Images
When the Federal Reserve lowered its benchmark interest rate by half a percentage point in September, it wasn’t a particularly surprising move. At that point, the Fed was expected to make its first rate cut of the year in response to cooling inflation.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. The fact that the Fed then lowered its benchmark interest rate by a quarter of a percentage point in November also wasn’t shocking. And in the coming weeks, we’re likely to see a drop in auto loan rates, credit card rates, and certificate of deposit (CD) rates.The Fed’s latest move could also have a big impact on mortgage rates. Here’s what you need to know if you’re thinking of buying a home or refinancing your mortgage.You may have an easier time buying a homeThere’s a reason so many buyers have struggled to purchase a home this year. Not only have home prices been elevated, but mortgage rates have been relatively high — especially compared to the record-low rates borrowers enjoyed in 2020 and 2021.But now that the Fed has cut rates again, mortgage rates could soon be on the downswing. That could benefit you as a buyer in a couple of ways.First, low mortgage rates should make it easier to afford monthly payments for a home. Second, they could lead to more real estate inventory.Housing inventory has been sluggish because a lot of homeowners don’t want to give up the incredible mortgage rates they locked in a few years ago. But as rates fall, more people may be willing to sell.An increase in inventory not only gives you more properties to choose from but could lead to a narrowing in the gap between supply and demand. And that could give you more negotiating power as a buyer.If you think you’ll be ready to buy a home in the coming months, work on boosting your credit score and down payment funds now. Also, start shopping around for a mortgage. Click here for a list of the best mortgage lenders.A refinance could be in your futureFalling mortgage rates aren’t just good for prospective home buyers; they’re also good for people who want to swap their current home loans for new ones.As rates fall, refinancing a mortgage could result in lower monthly payments. So if you think you’ll be in your home for at least a few more years, it could pay to shop around for a refinance. Just make sure you intend to stay in your home long enough to recoup your closing costs, which are the fees lenders charge to put a new home loan in place.Say you’re charged $5,000 in closing costs to refinance your mortgage. If that saves you $250 a month, it will take 20 months to break even. If you think you might move in a year, then refinancing won’t pay off. But if you plan to be in your home another five years or more, then refinancing would make sense.Just as it’s a good idea to try to boost your credit score in anticipation of signing a brand-new mortgage, it also pays to work on raising your score if you’re interested in refinancing an existing mortgage. You can do so by paying bills on time, reducing credit card balances, and checking your credit report from each of the three bureaus — Experian, Equifax, and TransUnion — to make sure it doesn’t contain errors that could be working against you.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

When the Federal Reserve lowered its benchmark interest rate by half a percentage point in September, it wasn’t a particularly surprising move. At that point, the Fed was expected to make its first rate cut of the year in response to cooling inflation.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

The fact that the Fed then lowered its benchmark interest rate by a quarter of a percentage point in November also wasn’t shocking. And in the coming weeks, we’re likely to see a drop in auto loan rates, credit card rates, and certificate of deposit (CD) rates.

The Fed’s latest move could also have a big impact on mortgage rates. Here’s what you need to know if you’re thinking of buying a home or refinancing your mortgage.

You may have an easier time buying a home

There’s a reason so many buyers have struggled to purchase a home this year. Not only have home prices been elevated, but mortgage rates have been relatively high — especially compared to the record-low rates borrowers enjoyed in 2020 and 2021.

But now that the Fed has cut rates again, mortgage rates could soon be on the downswing. That could benefit you as a buyer in a couple of ways.

First, low mortgage rates should make it easier to afford monthly payments for a home. Second, they could lead to more real estate inventory.

Housing inventory has been sluggish because a lot of homeowners don’t want to give up the incredible mortgage rates they locked in a few years ago. But as rates fall, more people may be willing to sell.

An increase in inventory not only gives you more properties to choose from but could lead to a narrowing in the gap between supply and demand. And that could give you more negotiating power as a buyer.

If you think you’ll be ready to buy a home in the coming months, work on boosting your credit score and down payment funds now. Also, start shopping around for a mortgage. Click here for a list of the best mortgage lenders.

A refinance could be in your future

Falling mortgage rates aren’t just good for prospective home buyers; they’re also good for people who want to swap their current home loans for new ones.

As rates fall, refinancing a mortgage could result in lower monthly payments. So if you think you’ll be in your home for at least a few more years, it could pay to shop around for a refinance. Just make sure you intend to stay in your home long enough to recoup your closing costs, which are the fees lenders charge to put a new home loan in place.

Say you’re charged $5,000 in closing costs to refinance your mortgage. If that saves you $250 a month, it will take 20 months to break even. If you think you might move in a year, then refinancing won’t pay off. But if you plan to be in your home another five years or more, then refinancing would make sense.

Just as it’s a good idea to try to boost your credit score in anticipation of signing a brand-new mortgage, it also pays to work on raising your score if you’re interested in refinancing an existing mortgage. You can do so by paying bills on time, reducing credit card balances, and checking your credit report from each of the three bureaus — Experian, Equifax, and TransUnion — to make sure it doesn’t contain errors that could be working against you.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

“}]] Read More 

[[{“value”:”Image source: Getty Images
If you’re not used to spending money just to enter a store, then you may not love the idea of paying for access to Costco. A basic membership will cost you $65 a year following a recent fee hike, while an Executive membership that gives you 2% cash back on your purchases will cost $130. Top credit card to use at Costco (and everywhere else!)
We love versatile credit cards that offer huge rewards everywhere, including Costco! This card is a standout among America’s favorite credit cards because it offers perhaps the easiest $200 cash bonus you could ever earn and an unlimited 2% cash rewards on purchases, even when you shop at Costco. Add on the competitive 0% interest period and it’s no wonder we awarded this card Best No Annual Fee Credit Card.
Click here to read our full review for free and apply before the $200 welcome bonus offer ends!But there’s a reason Costco charges a membership fee. Collecting that money helps Costco offer ultra-low prices. And if you shop at the store often enough, you may find that your savings are able to more than make up for your membership fee. Costco also fully stands behind every membership it sells. If you’re unhappy with yours, you can cancel and get your money back at any time. Technically, this means you can buy a membership, use it for 364 days, and then cancel right before the one-year mark for a refund. But whether you should exercise this option is a different story.When you take advantage of Costco’s generosityCostco will typically give you your money back on a membership even if it’s clear you’ve abused its policy by canceling right before the one-year mark. But if you do that, don’t expect to be allowed to renew anytime soon.There’s no preset amount of time you’ll need to wait in that situation before being allowed to sign up for Costco again. But you should know that Costco can deny or revoke memberships at its discretion. So if you cancel after 364 days (meaning, right before your one year is up), you may have to wait a year to become a member once more. And there’s a chance that Costco might ban you from the store for several years. Don’t be so quick to cancel your Costco membershipIf you’re not getting great value out of your Costco membership, then there’s no sense in paying for it. But before you cancel, make sure you’re aware of the many benefits it offers.For example, did you know that as a Costco member, you get access to discounted gift cards? With the holidays coming up, those might come in handy and save you a nice amount of money.You may also not realize this, but Costco offers a host of home improvement services, from window treatments to flooring to solar panels. Not only might your membership help you pull off renovations at a great price, but you’ll commonly be rewarded with a Costco Shop Card (the store’s version of a gift card) after your project is done. That’s bonus cash you get to use at the store.Plus, you might save more money than expected by shopping at Costco with the right credit card. Click here for a list of credit cards that reward Costco shoppers big time.And finally, don’t forget about Costco’s low-cost gas. Not only might you spend less per gallon, but you might get better fuel efficiency because Costco gas carries the TOP TIER designation. Just because Costco gives you the flexibility to cancel your membership right before the one-year mark doesn’t mean you should. Losing access to Costco could mean missing out on more benefits than you’d expect. Top credit card to use at Costco (and everywhere else!)
We love versatile credit cards that offer huge rewards everywhere, including Costco! This card is a standout among America’s favorite credit cards because it offers perhaps the easiest $200 cash bonus you could ever earn and an unlimited 2% cash rewards on purchases, even when you shop at Costco. Add on the competitive 0% interest period and it’s no wonder we awarded this card Best No Annual Fee Credit Card.
Click here to read our full review for free and apply before the $200 welcome bonus offer ends!We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.”}]] [[{“value”:”

If you’re not used to spending money just to enter a store, then you may not love the idea of paying for access to Costco. A basic membership will cost you $65 a year following a recent fee hike, while an Executive membership that gives you 2% cash back on your purchases will cost $130.

Top credit card to use at Costco (and everywhere else!)

We love versatile credit cards that offer huge rewards everywhere, including Costco! This card is a standout among America’s favorite credit cards because it offers perhaps the easiest $200 cash bonus you could ever earn and an unlimited 2% cash rewards on purchases, even when you shop at Costco.

Add on the competitive 0% interest period and it’s no wonder we awarded this card Best No Annual Fee Credit Card.

Click here to read our full review for free and apply before the $200 welcome bonus offer ends!

But there’s a reason Costco charges a membership fee. Collecting that money helps Costco offer ultra-low prices. And if you shop at the store often enough, you may find that your savings are able to more than make up for your membership fee.

Costco also fully stands behind every membership it sells. If you’re unhappy with yours, you can cancel and get your money back at any time.

Technically, this means you can buy a membership, use it for 364 days, and then cancel right before the one-year mark for a refund. But whether you should exercise this option is a different story.

When you take advantage of Costco’s generosity

Costco will typically give you your money back on a membership even if it’s clear you’ve abused its policy by canceling right before the one-year mark. But if you do that, don’t expect to be allowed to renew anytime soon.

There’s no preset amount of time you’ll need to wait in that situation before being allowed to sign up for Costco again. But you should know that Costco can deny or revoke memberships at its discretion. So if you cancel after 364 days (meaning, right before your one year is up), you may have to wait a year to become a member once more. And there’s a chance that Costco might ban you from the store for several years.

Don’t be so quick to cancel your Costco membership

If you’re not getting great value out of your Costco membership, then there’s no sense in paying for it. But before you cancel, make sure you’re aware of the many benefits it offers.

For example, did you know that as a Costco member, you get access to discounted gift cards? With the holidays coming up, those might come in handy and save you a nice amount of money.

You may also not realize this, but Costco offers a host of home improvement services, from window treatments to flooring to solar panels. Not only might your membership help you pull off renovations at a great price, but you’ll commonly be rewarded with a Costco Shop Card (the store’s version of a gift card) after your project is done. That’s bonus cash you get to use at the store.

Plus, you might save more money than expected by shopping at Costco with the right credit card. Click here for a list of credit cards that reward Costco shoppers big time.

And finally, don’t forget about Costco’s low-cost gas. Not only might you spend less per gallon, but you might get better fuel efficiency because Costco gas carries the TOP TIER designation.

Just because Costco gives you the flexibility to cancel your membership right before the one-year mark doesn’t mean you should. Losing access to Costco could mean missing out on more benefits than you’d expect.

Top credit card to use at Costco (and everywhere else!)

We love versatile credit cards that offer huge rewards everywhere, including Costco! This card is a standout among America’s favorite credit cards because it offers perhaps the easiest $200 cash bonus you could ever earn and an unlimited 2% cash rewards on purchases, even when you shop at Costco.

Add on the competitive 0% interest period and it’s no wonder we awarded this card Best No Annual Fee Credit Card.

Click here to read our full review for free and apply before the $200 welcome bonus offer ends!

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

“}]] Read More 

[[{“value”:”Image source: Getty Images
Your credit score might seem like a complicated subject. Several factors go into it, and they’re not the most self-explanatory.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. As confusing as credit scores can be, building credit is fairly simple. It also has huge financial benefits. You’ll be able to get the best credit cards, you’ll pay lower interest rates on loans, and you’ll be more likely to qualify for rental housing. In most states, good credit could even save you money on car insurance.Like everyone, I had to build my credit from the ground up. I eventually reached an 800 credit score through a few key steps.1. I’ve always paid my credit card bill on timeYour credit score is a measure of how trustworthy you are when borrowing money. If you have a high credit score, it’s a sign to lenders you’re likely to pay back credit cards and loans. So it’s no surprise that your payment history is the most important factor in your credit score.Credit card and loan payments (or non-payments) get reported on your credit history every month. Every on-time payment is good for your credit score. Other bills usually don’t get reported, although they could be if the account becomes delinquent.I’ve kept my payment history spotless. Now, to clarify, a payment is only reported as late once it’s at least 30 days past due. If you miss a credit card payment, but you pay it a week later, that’s still considered an on-time payment on your credit history. Although it’s best to pay by the due date, there is some wiggle room there.A perfect payment history could already be enough for a good credit score. And if you have good credit, it’s worth getting a card with the benefits you deserve. Click here to see our picks for the best cash back cards with rates of up to 6% back and welcome offers worth $200 or more.2. I’ve regularly increased my total creditMy credit limits have gone up quite a bit over the years. When I got my first credit card, it had a $500 limit. As I built credit, I applied for new cards and requested credit limit increases on the cards I already had. I now have over $200,000 in total credit across all my cards.Having that much credit helps my score because of a factor called credit utilization. This is the second-most important factor after payment history. It’s calculated by dividing your credit card balances by your credit limits. Have $5,000 in balances and $10,000 in total credit? Your credit utilization is 50%.The lower your credit utilization is, the better. If you can keep it below 20% to 30%, that’s good for your credit.I don’t spend anywhere near my total credit. But by having so much, it keeps my credit utilization low. Even if my combined card balances were $10,000, I’d still be at less than 5% credit utilization.3. I started using credit at a young ageThe amount of time you’ve been using credit is a factor in your credit score. It also ties into your payment history. Making on-time payments for 10 years does much more for your credit than making on-time payments for 10 months.I got my first credit card when I was 19. My total credit history is even longer than that, because my father added me to one of his cards as an authorized user when I was a teen. By now, I’ve built up a long credit history to demonstrate that I’m trustworthy.You can’t go back in time. Even if you could, there would be more profitable moves than opening a credit card a few years earlier.But if you haven’t done so already, you can start building your credit history now. You’ll thank yourself in a couple of years, when you have excellent credit and all the benefits that come with it. If you’re not sure which cards you can get, check out our list of the best starter credit cards that don’t require any credit history.How to get an 800 credit scoreAnyone can get a high credit score, and you don’t need to do anything complicated. What’s most important is paying bills on time. Keeping your credit utilization low is another key credit habit. You can do this by increasing your total credit when possible, but also aim to pay off your credit cards in full every month. It’s good for your credit utilization, and it keeps you out of expensive credit card debt.Credit history is trickier, since there are no shortcuts there. The best move you can make is to have at least one credit card that you use regularly. Building up your credit history, combined with on-time payments and low credit utilization, will have you well on your way to a high score.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

Your credit score might seem like a complicated subject. Several factors go into it, and they’re not the most self-explanatory.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

As confusing as credit scores can be, building credit is fairly simple. It also has huge financial benefits. You’ll be able to get the best credit cards, you’ll pay lower interest rates on loans, and you’ll be more likely to qualify for rental housing. In most states, good credit could even save you money on car insurance.

Like everyone, I had to build my credit from the ground up. I eventually reached an 800 credit score through a few key steps.

1. I’ve always paid my credit card bill on time

Your credit score is a measure of how trustworthy you are when borrowing money. If you have a high credit score, it’s a sign to lenders you’re likely to pay back credit cards and loans. So it’s no surprise that your payment history is the most important factor in your credit score.

Credit card and loan payments (or non-payments) get reported on your credit history every month. Every on-time payment is good for your credit score. Other bills usually don’t get reported, although they could be if the account becomes delinquent.

I’ve kept my payment history spotless. Now, to clarify, a payment is only reported as late once it’s at least 30 days past due. If you miss a credit card payment, but you pay it a week later, that’s still considered an on-time payment on your credit history. Although it’s best to pay by the due date, there is some wiggle room there.

A perfect payment history could already be enough for a good credit score. And if you have good credit, it’s worth getting a card with the benefits you deserve. Click here to see our picks for the best cash back cards with rates of up to 6% back and welcome offers worth $200 or more.

2. I’ve regularly increased my total credit

My credit limits have gone up quite a bit over the years. When I got my first credit card, it had a $500 limit. As I built credit, I applied for new cards and requested credit limit increases on the cards I already had. I now have over $200,000 in total credit across all my cards.

Having that much credit helps my score because of a factor called credit utilization. This is the second-most important factor after payment history. It’s calculated by dividing your credit card balances by your credit limits. Have $5,000 in balances and $10,000 in total credit? Your credit utilization is 50%.

The lower your credit utilization is, the better. If you can keep it below 20% to 30%, that’s good for your credit.

I don’t spend anywhere near my total credit. But by having so much, it keeps my credit utilization low. Even if my combined card balances were $10,000, I’d still be at less than 5% credit utilization.

3. I started using credit at a young age

The amount of time you’ve been using credit is a factor in your credit score. It also ties into your payment history. Making on-time payments for 10 years does much more for your credit than making on-time payments for 10 months.

I got my first credit card when I was 19. My total credit history is even longer than that, because my father added me to one of his cards as an authorized user when I was a teen. By now, I’ve built up a long credit history to demonstrate that I’m trustworthy.

You can’t go back in time. Even if you could, there would be more profitable moves than opening a credit card a few years earlier.

But if you haven’t done so already, you can start building your credit history now. You’ll thank yourself in a couple of years, when you have excellent credit and all the benefits that come with it. If you’re not sure which cards you can get, check out our list of the best starter credit cards that don’t require any credit history.

How to get an 800 credit score

Anyone can get a high credit score, and you don’t need to do anything complicated. What’s most important is paying bills on time. Keeping your credit utilization low is another key credit habit. You can do this by increasing your total credit when possible, but also aim to pay off your credit cards in full every month. It’s good for your credit utilization, and it keeps you out of expensive credit card debt.

Credit history is trickier, since there are no shortcuts there. The best move you can make is to have at least one credit card that you use regularly. Building up your credit history, combined with on-time payments and low credit utilization, will have you well on your way to a high score.

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