Tips on How to Build Your Credit Score Using Credit Cards

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Tips on How To Build Your Credit Score Using
Credit Cards
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All About Credit Cards

• Credit cards can be a great help in your life for
  helping your manage your finances. Not only are
  they good for building good credit, but they also
  can give you a backup plan, in case of times
  where you incur unintended financial burdens.

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• Tips on How To Build Your Credit Score Using
  Credit Cards

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Consider Applying for a Prepaid Debit Card

• If you have poor credit and want to repair it,
  consider a prepaid debit card. This type of
  credit card can usually be found at your local
  bank. You can only use the money that you have
  loaded onto the card, but it is used as a real
  credit card, with payments and statements. Make
  sure that this debit card reports your
  transactions to credit bureaus.

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Consider Getting a Secured Credit Card

• A secured credit card will require you to open a
  savings account before a card is issued. If you
  ever default on a payment, the money from that
  account will be used to pay off the card and any
  late fees. This is a good way to begin
  establishing credit so that you have
  opportunities to get better cards in the future.

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Use Your Credit Card Consistently

• You do not have to use your credit card
  frequently, but you should at least be using it
  once a month. While the goal is to keep the
  balance low, it only helps your credit report if
  you keep the balance low, while using it
  consistently at the same time.

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Keep an Eye on Your Credit Card Mail

• While some might be junk mail offering to sell
  you additional services, or products, some mail
  is important. Credit card companies must send a
  mail if they are changing the terms on your
  credit card. Sometimes a change in terms can cost
  you money. Make sure to read mailings carefully,
  so you always understand the terms that are
  governing your credit card use.

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Ask for Better Interest Rates

• To lower your interest payments, do not hesitate
  to phone your credit companies and ask for better
  interest rates. If you have a strong credit
  rating and have always made payments on time, an
  improved interest rate might be yours for the
  asking. You may be able to save money on your
  interest rates just by picking up the phone and
  calling your creditors.

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Contact Your Credit Card Company

• When you are unable to pay off one of your credit
  cards, then the best policy is to contact the
  credit card company. Letting it just go to credit
  collections is bad for your credit score. You
  will find that most companies will let you pay it
  off in smaller amounts, as long as you don't keep
  avoiding them.

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Do Not Use a Credit Card to Pay Off Another

• Do not use one credit card to pay off the amount
  owed on another until you check and see which one
  has the lowest rate. While this is never
  considered the best thing to do financially, you
  can occasionally do this to make sure you are not
  risking getting further into debt.

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Resources
For more credit tips please visit our blog
on http//www.newhorizon.org/credit-info/
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