by Linda Knox
The title of this article sounds outlandish but using a credit card in the particular way mentioned in this article may actually help your credit score. Having a good credit score gives you the opportunity for loan and credit card applications to get approved and being charged lower interest rates on those loans. So it's worth doing what you can to make sure you have a good one.
Credit agencies want to see that you repay your credit on time and that you are dependable with credit (35% of your credit score is based on payment history). One of the ways to show them this is to make use of some type of credit where they can see you using it and repaying it on when it's due each month. Obtaining a credit card or store card and using it regularly is one way to accomplish this. By using it for a period of at least 6 months, you get the benefit of a good payment history showing up on your credit report.
The best way to go about this is to apply for a credit card with a small limit, around the $500 mark. If you don't want to apply for one or haven't built up enough of a credit score to be approved for one, you can always get a secured credit card. This is where you leave the amount of the credit limit, say $500, as a deposit with the bank. And the bank gives you a credit card for that amount of money. You still need to make the repayments just as you would on a normal credit card.
You need to start using this credit card on a regular basis, on something that would be easy for you to repay by the due date. For example if you have the cash to pay for a small item, use your credit card to pay for it instead, then use the cash you were going to pay for the item as the repayment, so it is paid in full by the due date. This is what will establish that good payment history that will improve your credit score.
This isn't an excuse to go on a crazy spending spree with your new credit card and pile up debt. The only reason you are using this card is to establish some kind of credit history for yourself. By only putting small amounts on this credit card and repaying the card in full by the due date, you will show that you are responsible with credit and this will be reflected on your credit report. - 41115
If this article has been helpful then take a look at (http://www.fixmy-credit.net) fix my credit for more useful advice and tips like whether (http://www.fixmy-credit.net/credit-repair-forums.html) credit repair forums are worth your time.
---------------------------------
New Unique Article!
Title: Can A Credit Card Improve Your Credit Score?
Author: Linda Knox
Email: articles@webcareergirl.com
Keywords: credit,finance,debt,legal,advice,money,home,lifestyle,shopping,credit card
Word Count: 432
Category: Finance:Credit
---------------------------------
---------------------------------------------------
You are receiving this because you signed up for it on 2010-08-22 from IP
To fine-tune your selection of which articles to receive, just login here:
http://www.uniquearticlewizard.com/bloggers/
using your username: nhenterprises96
To unsubscribe please use the following link:
http://www.uniquearticlewizard.com/unsubscribe.php?mail=nickynickhayslett.credittips@blogger.com&code=7b33c5ec41a07c0195580ca457e77e84
---------------------------------------------------
No comments:
Post a Comment