5 Major Ways Credit Cards Affect Your Credit Scores

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5 Major Ways Credit Cards Affect Your Credit
Scores
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Did you know ?
Every transaction on your credit card affects
your credit score.
Even applying for a new card or closing an old
account can also negatively affect your score.
Lets find out some common credit card habits
that can hurt your score -
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Use Credit Card to Create Credit History
You can use credit cards not only to make
purchases but also to establish a good credit
history.
Your credit report will give a score of -1 or NH
(no hit). Using a credit card is one of the
simplest ways to start your credit history.
Pay off all your credit card dues on time every
month to establish yourself as a responsible
borrower.
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Delay in Credit Card Payments
Your payment history is the most influential
factor of your credit report. It makes up 35 of
your credit score.
Moreover, any delays in payment are reported to
credit bureaus like CRIF.
To avoid the repercussions of late payments, get
into the habit of paying your credit card dues
fully every month.
If you are in the habit of missing out on paying
your card dues, then you may be damaging your
score.
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Credit Utilization Ratio
The credit utilization ratio is the percentage of
a borrowers total available credit that is
currently being utilized. It is a component used
by credit reporting agencies in calculating a
borrowers credit score.
If you are applying for a loan, you need to carry
some balance on your card. As a rule of thumb,
you should maintain a credit utilization ratio of
30-40.
If you think you can efficiently manage your
credit card dues, you can ask your bank to give
you a higher credit limit on your existing card.
Or, you can even apply for a new card with a
higher limit. 
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Applying for a New Credit Card
Every time you apply for a new card, a hard
enquiry is initiated. This temporarily drops
your credit score. Its always advisable to keep
your credit card applications to a minimum.
 For example, if you shop a lot, then look for a
card that offers good cash back.
Whenever you apply for a credit card, draw a
comparison between 2-3 cards. Based on your
current credit score, pick the one that suits you
the best.
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Closing a Credit Card Account or Discontinuing a
Credit Card
If you close an account that has been there for a
long time, you are erasing all your credit life.
Credit history is an important factor in your
credit score.
Additionally, as you no longer have access to the
credit limit of your card you closed, your credit
utilization ratio will also drastically drop.
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So, make a wise decision before closing any old
credit card. You may simply lower the usage of
the card or keep it safe. This will not hamper
your score.
Make sure you stick to the credit limit of up to
30-40 and adopt the aforementioned credit
habits.
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You can get both your Personal Credit Score and
Business Credit Score by applying directly on
the link mentioned below
https//cir.crifhighmark.com