In order to get by in life, credit comes into play.

Here is one tip for how to set up your credit history properly.

Your credit history

The minute you open your first credit card is when your credit history is established.

As time goes by, your credit history automatically increases. Your goal is to keep your credit history as long as possible.

The key for doing that is to never cut away any part of your credit history. So your first two credit cards have to remain open forever.

Don’t close your first two cards

Think about it as a timeline. The timeline starts at date 1 and goes up until date 2. If you change the start date to a later date, the first chunk of the timeline will get cut off and the timeline will start later and be shorter.

Your first two credit cards are the start of your credit history timeline. Make sure not to cut off that part so that your credit history is at it’s maximum.

Your first cards should have no annual fee

To make it feasible to keep your first two cards open forever, the best idea is for those cards not to have annual fees. If the cards have no annual fee then there should be no reason for you to have to close the card at a later date.

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