Michael Curry
Is your credit score lagging just a bit? If so, you might be surprised to learn that you can significantly boost your credit score simply by using credit cards responsibly. When you create a budget and stick to it, having a small balance (and paying it off each month!) on your credit cards can have a positive net effect on your credit rating. See how this works, or apply online for a credit card today!
Not a Credit Card: A Debit Card!
Credit cards work best for individuals when they are used as a debit card — you never take more out of the account than you have available to put back into it.
That way, you can reduce the possibility that you’re going to overspend on a particular month and be challenged to pay it back.
On-Time Payments Boost Your Credit Score
If you are just starting out with your first credit card or looking for ways to boost your credit score, having a series of on-time payments is one of the key indicators that your credit score should increase.
Consider putting together a structured schedule of payments and regular purchases for your credit card to help you get in the habit of responsible spending. Side benefit: paying your balance in full each month saves you from the added interest charges that can accrue from your credit cards!
Having credit cards available is a huge convenience for you and your family, but there are some pitfalls to avoid. Maintaining a moderate balance on a monthly basis, quickly paying off any outstanding amounts and sticking to a budget will help you make the most of the benefits of credit cards while steering clear of some of the challenges.
