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You Can Develop Credit Score Using Your Credit Card

By Karen Anderson
Published: Sunday, October 18th, 2009

Swipe it. This is the power of a credit card. You can get that adorable jacket, that top of the line cellular phone or those cool shoes in just a swipe if you have a credit card. However, a credit card can also bury you in debt and send you searching for credit report tips if you become too carefree. Instead of using your credit card to indulge yourself, why don’t you try looking at it as a way to building your credit score? It is possible and you better believe it.

Everything has limits and you should also set some limits if you are to make things work with your credit card. Begin by limiting your application for credit cards. Avoid applying for several credit cards within a year. There are repercussions of applying for so many credit cards because an inquiry will be sent to the credit bureau each time you apply for one. This will result to a low credit score. Credit report tips number one is to apply for a credit car if you are perfectly sure it is the one you will be satisfied with.

Use your card wisely. You are advised to use it but not to misuse it. By using your credit card, you are building your score. Not using your credit card will not help you at all. Even if you do not use your credit card, your available credit will be counted as debt when a creditor computes for your debt to income ratio. Credit report tips number two is to use your credit card during small purchases but be sure to pay on time and pay a large chunk of the balance shown in your monthly bill.

There is a danger on paying your credit balance off all the time. Yes, you read it right. This can easily translate into an avoidance to pay interest to a lender’s eyes. This action should normally be read as being responsible but this action may earn you higher service charges in place of the income from the interest that they could have gotten from your account. Credit report tips number three encourages you to let your card issuer earn a little profit from you. You can still build a good credit history by paying the minimum amount at least five days before it is due. A small amount of $5 to $10 dollars should be left to be carried over to the bill next month.

Early does it. Establish your credit early so you can have an excellent rating to present when the time comes that you will need. Again, be reminded that you can build your credit with only one card. Having a number of credit cards can make you lose credit points even without using your cards. If you are really intent on furthering your credit have a gasoline card and a store card added to your major credit card. Credit report tips final says that you go back to the tips above in order to use your credit card just right. You need to think of how you can build your credit score using your credit card and avoid looking your credit card as just a means to get what you cannot buy in cash at the moment.

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