3 ways you can improve your credit score with responsible use of credit cards

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When you are granted a credit card, it is vital for you to pay the credit bills on time so that you can maintain a good credit card score. A good credit card score elevates the chances of you getting loan and credits with adjustable interest rates. It is one of the best ways to pay off your loan while saving money which you would have paid through interests.credit score

If you have a poor credit score, then you are not the only one who is facing this. There are hundreds of people who have a poor credit score despite having a credit card for a considerably long time. Building a good credit score may take some time but if you adhere to the rules and regulations of the credit card issued by the company and make your credit card bill payment on time, then the time taken to build a decent credit card score will rise eventually. There are several steps which you can utilize for building up your credit card score such as by paying the bill on time along with paying the debt and utilizing other tools that are meant for adding utility and other bills to your credit file.

So, let us have a look at some of the best ways of credit card bill payment which will help to improve your credit card score.

  1. Stay consistent with bill payment

The best way to build a good credit score is by paying your bills on time. Credit score depends on the way you take debt and repay it. For having a good credit card score, it is essential for you to have a well-maintained record of paying your bills on time. If you keep paying the full amount of your credit card bills on time every month, then it will help you build a good credit card score. And moreover, apart from building a good credit card score, when you pay your credit card bill in full every month, it will also help you to save money which you would have paid as interest to the card issuing company. As per FICO, 35% of your credit card score depends on your payment history.

  1. Use it like a debit card

Owing a credit card holds its positive as well as the negative side. When you purchase anything using your credit card, the amount doesn’t get deducted from your bank account, unlike a debit card. Instead, the amount gets to add up to your bill which you will need to pay at the end of every month. So, while using a credit card for making payment for any purchase or for paying bills, you must make sure that you are not spending unnecessarily. Always set a budget while using your credit card for making any payment and don’t cross that limit that you have set for yourself. This will help you to pay your bills easily.

  1. Maintain a low balance

The higher your use, the more probable it is that you’ll be overextended and may miss installments. Keeping your Visa balance moderately low, at that point, can give a noteworthy lift surprisingly. Remember that regardless of whether you pay all required funds by the due date every month, you may at present have high use. The parity on your month to month proclamation is commonly the sum that card backers report to the credit departments. To keep usage low, consider paying two times every month as opposed to trusting that your announcement will come.

The moment you start using your credit card, your record will be tracked by the lenders. Start using it responsibly and also pay it on time to maintain a good credit score. So, if you are looking forward to raising your credit card score, make sure to keep the above-mentioned tips in mind.