How to improve my credit score with my credit card?

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Image courtesy:Flickr

‘How to improve my credit card score with my credit card?’ might be the question going through your mind. Credit Cards are some of the most amazing inventions of the end of the Twentieth century. They have since been massively being evolving and have adapted by our society. Long gone are the days when we had to rely upon the unprotected and tedious usage of cash notes and coins. Today, about 90% of all currency that floats around the world, all the time is completely digital. Many countries have already started making all cash.

India already has a plan in motion, which by the time, when it reaches its fifth and final stage, will render all the cash that flows through this country today, useless. Currently, we’re on the third stage.  Instead of that, we all will have much safer, better, and more convenient electronic money; like credit cards and bitcoins.

Image Courtesy: Pixabay
Image Courtesy: Pixabay

But as the credit cards become much popular, the value of having good credit card scores increases. This is because credit card scores are used everywhere in the banking and many financial workings today. They are used for giving all kinds of loans, for bigger financial deals, and even for many non-banking endeavors as well.  Having a good credit card score can get you better deals like less interest on loans, more interests on your savings, and even special offers and more points.

So, you might be wondering ‘how to improve my credit card score with my credit card?’ And through this article, we are going to answer just that. And here are all the ways through which you can improve your credit card score dramatically:

  • Keep an eye on your credit card balance: One of the biggest reasons why credit card scores fall is because of high unpaid credit card balances. So, one of the best things you can do to improve upon that is, if you are able keep the percentage of your revolving credit against the credit you are actually using, small. The most optimum percentage of keeping this would at most at 30% If you truly want to boost your credit card score, you should consider to pay your balances every month in full. Because this will surely help you keep your credit balance really low at any given time. The algorithm with which, the credit card score is judged gives more priority to consistent low credit card balances over a long period of time, than the credit card balances which keep on piling up for months and later are paid.

    Image Courtesy: Pixabay
    Image Courtesy: Pixabay
  • Don’t delete your old debt from your report: Many people believe that having any sort of old debts on your credit card reports is a fairly bad idea. And even if the debt is paid, they get it removed themselves. But the thing is, the way your credit card scored is judged, also takes the examples of ‘good debts’ as a positive to increase your credit card score. Good debt is any debt that is paid, and if it is mentioned in your credit card score, it can actually help you answer your question of ‘how to improve my credit card score with my credit card?’
  • Pay all of your bills on time: The best thing that you can do for your credit card scores is to pay all of your bills on time. Not just your credit card bills, but all of your bills in general. This is because, your credit card report reflects upon the extra charges that you have paid for every debt you have settled with the usage of your credit card. If you pay all of your bills on time, it will help you reduce the negative impact that comes with piled on bills and will actually improve your credit card score. To learn more about that, visit here.

    Image courtesy:Flickr
    Image courtesy:Flickr
  • Avoid taking financial risks: The final thing that we would advise you so that you can understand ‘how to improve my credit card score with my credit card?’, is to avoid all sorts of financial risks that can make your credit card issuer a bit nervous. These risks can be anything from money stressing activities like pawnshop pawns, hiring divorce attorney, or taking business advances.

We hope, through our help you will be able to boost your credit card score.

 

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