When it comes to measuring one’s financial health, the credit score is one of the most essential aspects. The better a user scores on the credit lines, the easier it will be for the person to get loans approved or access future benefits. Additionally, there are various ways in the section of how to use credit card to increase credit scores.
Moreover, higher credit scores also open up access to a lower rate of interest in borrowing. Since CC are an essential part of the credit line, users can put them to use to build a good credit score. Let us have a look at how to use a credit card to build a good credit score.
Table of Contents
-> Paying the credit card bill by the due date
The issuers of CC regularly submit their report to the bureau regarding the credit card transactions that aid in updating or calculating the credit score. While on the one hand, late payments and defaults often lead to a decrease in the credit score, timely repayments result in a steady increase of the credit score.
Therefore it is always advisable to pay the outstanding credit card dues by the due date that will, in turn, have a positive effect on your credit score. Moreover, if you are unable to pay the credit card dues to the full capacity, in any case, you can always opt for paying the amount in easy EMI options.
-> Keeping the credit card utilization within 30%
In this world of technology, one can easily get an instant credit card online and improve your credit score. The lenders usually prefer to offer better credit to those having a credit utilisation under 30%.
The lenders do not give those with higher credit utilisation priority. The credit bureau usually tends to decrease or limit the credit score of those who exceed the CC utilisation by 30%. Therefore if you wish to improve your credit score through your CC, utilisation then ensures that it does not exceed 30% usage.
-> Choosing a credit card based on your lifestyle
There exists a variety of instant credit card online that one can get in a hassle-free manner. It is always wise to choose a CC depending upon one’s lifestyle. Such an act will enable you to maintain your credit card limit without facing issues with your financial health.
Moreover, by making the right choice, the user will also be able to get access to better benefits, which will provide you with better credit scores.
-> Avoiding multiple credit card applications within a short duration
If you are wondering how to use credit card to build a good credit score, then this is an essential tip that you must consider. Applying for several CC within a short period will negatively impact your credit score and will pull it down by a certain number of points. Though it is easy to get an instant credit card online, one must refrain from such an act if they wish to improve their credit score.
-> Using a credit card like a debit card
There exists various ways on how to use credit card to build a good credit score, and this is one of the full proof methods. You must always spend in such a way that will allow you to repay on time. By treating your CC like a debit card, you can avoid paying a higher rate of interest and, in turn, improve the credit score in the process.
If you have been wondering how to use credit card to build a good credit score, you need to follow the above mentioned steps. From paying your monthly CC dues on time to avoiding multiple credit card applications, these tips will allow the user to improve their credit score considerably.
You can also apply for an instant credit card online at Bajaj Finserv RBL Bank SuperCard . This card has the powers of 4 cards in 1 card. It can be used as a loan card, EMI card, and cash card. With this card, users can conveniently convert their purchases of more than Rs. 3000 into affordable EMI options. If you need urgent cash, you can easily avail an instant loan on your cash limit for 90 days with no processing fee. Apart from this, there are numerous other perks and benefits of this card.