Improving credit score with credit card, If you are planing to buy a new house or car loan. For any kind of loan, the most important ratio is credit card score; based on which any bank will decide the interest rate for loan.
You might be surprised to know that you can improve your credit score by having a credit card with you. Historically, credit is always shown as negative thing or wrong finance decision but you can build your credit score with credit card, if you use it wisely.
5 Ways to Improve Your Credit Score With Credit Card
01. Apply for a credit card
Don’t be afraid to apply for a credit card, if you want to improve your credit score with credit card. To create your credit history, you should start buying with on credit with credit card, even though you can pay for it fully on debit.
02. Pay On time
Yes. It’s Simple Just pay on time. if you delay on payment, it will affect your credit history and the score.
Set a reminder on your mobile for making payment of credit card or set it on auto-debit.
03. Always pay on full, not the minimum due amount
As much as possible, you should always pay the total amount due in the credit card and not the minimum due shown in the front of the credit card statement.
Minimum Amount Due is a amount of payment which will help you to keep the account active. However, interest is still charged in you.
04. Don't max out on credit limit
Try to only utilize 30% to 50% of your total credit limit for better credit score with your credit card.
05. Keep checking your score
Not too much, but you should check that how much you have build your credit score in past 3-6 months.
Try not to be over obsessed on checking your score as it take time to create history even if it’s a credit history.
See you in my next blog, you can keep building credit score with credit card that time.