You should check yours at least once every few months to ensure you're headed in the right direction. Watch your FICO® ScoreĪlthough there are multiple types of credit scores, the FICO® Score is the one that lenders use most often. Your payment history is the most significant factor in determining your credit score, and on-time payments will help you get excellent credit. The best thing you can do for your credit is to always pay on time.
Here's what you need to do to build credit with a credit card: Pay on time
Rihanna work work work video how to#
Learn more: How to Read Your Credit Card Statement How to build creditĪfter you're approved for a credit card, it's important to use the card in a way that will improve your credit score. Thieves often make small purchases to test stolen credit card numbers, and then charge much more if the test purchase is successful. Even a small charge you don't recognize can be dangerous. If you find any that aren't, notify your card issuer immediately. Make sure all the charges on your statement are legitimate. Most cards offer additional benefits, like built-in purchase protection and coverage for stolen items. Learn more: How to Choose a Credit Card: 4 Steps to Picking the Right Card Know your benefitsĬredit cards not only serve as a short-term, interest-free loan of sorts, but they also reward customers for making purchases. Before you sign up for a credit card, make sure its rewards are both accessible and useful to you. One major benefit to using a credit card is that you'll get access to whatever rewards your issuer is offering. Learn more: Credit Card Interest Calculator Find worthwhile rewards The moment you begin to carry a balance, you'll automatically start accruing interest charges, which will compound daily until you find a way to eliminate your debt completely.
Rihanna work work work video full#
You should pay your full statement balance every month. Learn more: Does Maxing Out a Credit Card Hurt Your Credit Score? Always pay in full This means that if you have several credit cards with a collective limit of $10,000, you should make a point to never have more than $3,000 in charges at a single point in time. So how much should you really spend? A good rule of thumb is to only spend 30% of your available credit. Maxing out your credit cards is bad for your credit score, too. The best way to use a credit card is to pay it off right away. And if you only pay the minimum payment, you'll can up paying a lot of interest. If you can't pay off your credit card, your credit score will take a hit. Here's how to use a credit card wisely: Only charge what you can afford But if you're smart about credit card usage, you can enjoy a host of benefits and rewards and improve your credit score at the same time. Credit cards can be dangerous if you don't use them responsibly.
0 kommentar(er)
