How You Can Keep A High Credit Report While Using Credit Cards.
In today’s society, it is almost imperative to own at least one charge card account. It goes without saying however that Americans need to utilize these credit card accounts properly so that the use of these cards does not harm credit scores. There are many ways that credit card accounts can harm credit scores so I am going to give you the most important things to keep in mind:
1. Never charge more than 50% of the credit limit that has been given to you. This type of activity gives the impression that you are a high risk client. Even if you pay off the balance each and every month this use still poses a risk to the bank and it may harm your credit. However, if you keep your balance under 50% of the credit limit, this will affect your credit report in a positive way because it will show the banks that you are using your charge cards responsibly and this will definately help you to keep a great credit score!
2. You should only use charge card accounts for purchasing items that you are able to afford out of pocket. I know what you are saying “why would you want to utilize a charge card if you can afford the product cash?”. This is the type of spending that charge card accounts were made for. Charge cards weren’t designed as a financial crutch they were designed for safety and convenience so that the customer did not have to go out with huge amounts of cash on their person. Using credit card accounts as a financial crutch can only lead to one thing, a large amount of debt.
3. Never pay simply the minimum payment being asked of you. If at all possible, you will want to pay double or tripple payments. This is going to show the banks that you aren’t using the charge card accounts to survive. This will show the credit card companies that you are using your charge card accounts in the way that they were intended for use.
4. Finally when utilizing credit card accounts, use common sence. I know this seems dumb for me to say but, when utilizing a tool that can designate your financial stability in the future it is extremely important that you use common sense. You know think of things like “if you cannot afford it, then don’t buy it”.
Also, if you are going to get a credit card I advise Discover credit cards
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Tags: using credit cards
