Credit scores are dependent upon a number of factors that can be influenced by how you use your credit cards. The card itself will not be a magic bullet in increasing your score, though. How you use each particular card is the key.
Credit Scores
Credit scores are based upon several different factors, including: payment history, amounts owed, length of credit history, new credit and types of credit used. Any credit card that influences these factors positively can raise your score.
Payment History
One of the most important factors that can raise a credit score is a history of timely payments. Any credit card for which you make your payments on time, and do so repeatedly, will raise your credit score.
Length of Credit
Having a credit card for a long time can also boost your score, but only if you use it. A credit card you've had for years but haven't used is useless, and even making a small purchase and then paying the bill on time can raise your score immediately.
Balance Amount
How much a person uses the credit cards is one thing. How much of a balance accrued is another. Keeping too high a balance on your credit card can lower your score, while keeping your balance below 30 percent of the limit can be beneficial.
Number of Cards
While having too many credit cards may lower your credit score, having too few can do the same. Too few credit cards might not give creditors enough information about your credit habits, while too many can show you engage in risky credit behavior.
0 comments:
Post a Comment