How a Credit Card Can Boost Your Financial Record

There are negative perceptions around credit cards, however, what people do not know is that a credit card can boost your financial records, which can make it easier for you to qualify for any type of loan.

A credit score helps scoring models measure what type of risk you pose to lenders, therefore, whatever you do with your credit card affect your credit score? Even not having a credit card can affect your credit score.

The credit card issuer, often report your accounts activities to at least three major credit bureaus, this includes a credit report, credit limit, credit card balance, payment history, account status, and dates the accounts were opened. All these influences the credit score.

To ensure that you have a high credit score you have to follow simple rules:

  • Make sure credit accounts payments are made in the due date.
  • Make sure you pay the full instalments every month.
  • If struggling to repay your debt each month, make realistic repayment that you can manage.
  • Do not keep unnecessary credit cards that you no longer use, pay them off and close them.
  • Limit the amount of credit you’re using, do not use the whole amount if you do not have to.
  • Limit the number of credit applications you make, It will reflect as if struggling to manage the amount of debt you currently have.
  • Make sure you avoid too much-unsecured debt.

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