May 18, 2015
On time payments will not be all it takes to land an attractive credit rating. For that you must take action and focus on those things that can really give a boost to your credit score.
1. Don’t spend beyond your credit limit
Whenever you exceed your credit limit you'll not only be damaging your credit profile, but you will also be paying fines. Over a long term this can really add up to lots of money. It is advisable to pay your cards down each month and give yourself the full credit limit each month rather than bumping up against those pesky credit limits.
2. Use multiple cards wisely
It is better to use multiple cards than to only use one really large credit limit card. If you use your credit wisely on multiple cards and pay each off each month this demonstrates that you are in control and will contribute to a better score for you. This also shows stability in your credit score. 780 is considered to be a pretty good credit score, and there are those who do manage keep such scores by smartly managing multiple cars. 3 credit cards seem to be the magic number to give you the maximum score with a balance reported to the credit bureaus. So, use more than one card but not more than four if you really want to improve your score.
3. Use all your cards in smaller amounts at the same time.
Keep low balances across all your cards rather than taking one to the credit limit each month is a good sign that you are using all your available credit wisely. It does not matter that the purchases are small, so long as you keep your balances low, is a good strategy.
4. Pay your credit cards before the deadline.
If you pay before the closing date, this account shall submit a report of balances low at the end of the month. Not only does this show you can manager your accounts wisely, the interest charges will be calculated on a lower balance and save you money that will really add up over time. This will help to keep you aware of your cards and make a better impression on the credit agencies.
If you are looking to keep your credit score just right, you'll want to be sure that you are using your credit wisely, not obsessively. It is much better to form the habit of using credit wisely instead of trying to play games or manipulate your score each month. Pay attention on how you use your credit and follow the guidelines here and you too will benefits in your credit score.