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The Proper Use of Your Credit Card Can Raise Your Credit Score

By Ruth Racey
Published: Friday, February 12th, 2010
  1. Do not close your old credit card account when not needed
    One of the main things why your credit score may come at a very low level is because of the fact that you may have too many credit card accounts. Therefore, when you are thinking of erasing bad credit history by closing your old credit card account and getting a new one, it actually brings you more harm than benefit.  Remember that the more credit cards that you have, the larger the tendency for you to accumulate a large credit card debt, making you gave low scores. Therefore, do not forget not to close your credit card account, unless, it is really necessary for you to do it, such as in cases of bankruptcy. 
  2. Always keep your credit card balance below 30%
    Remember that the higher balance that you have, the lower credit score that you will get. Therefore, getting the lowest credit card outstanding balance actually helps you score better. In this case, 30% is already a very good threshold. Remember that every time you have an outstanding balance of more than 30%, you are already required to pay for it even though your credit card statement has not yet arrived. However, when you are having a balance that is below 30%, you can actually pay for at the time that your credit card statement arrives, all without having a low score. In addition, it also makes your expenditures in check.
  3. Always be sure that you are able to pay for your balance in full 
    One of the main determinants of your credit score is payment history. Meaning, the way you pay for your bills actually determines your credit core. In this case, whenever you are delinquently paying your bills, surely, you will get a very low score. However, when you are faithfully paying your bills on time, no wonder, you are surely getting a high credit score. Therefore, always be sure to pay your balance in full. This will surely make you have a better score than before.
  4. Always pay your balances early whenever you made a large purchase
    Having a large purchase may hurt your credit score a bit. Paying it delinquently even makes it worse. In this case, when you have already made a large purchase using your credit card, always ensure to pay it early. This will surely help in making you have a better score than before.

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