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5 Credit Card Tips to Help You Build Credit Faster

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5 Credit Card Tips to Help You Build Credit Faster

Building credit can seem difficult if you’re just starting out, but it doesn’t have to be. These five credit card tips will help you take control of your credit score and build it up to the score you need to land your dream apartment or secure that loan for the car of your dreams. Read here 5 Credit Card Tips to Help You Build Credit Faster.

1) Find the right cards

If you’re just starting out and want a credit card, you’ll need to find one that is designed for people who are still building their credit. Check out cards like the Barclaycard Ring Mastercard or Capital One Venture One Rewards Credit Card.

These two cards offer no annual fee and give you access to introductory APR offers on purchases and balance transfers. The Barclaycard Ring Mastercard also offers rewards on dining, grocery, gas, online shopping and more while the Capital One VentureOneTM Rewards Credit Card offers cash back rewards on every purchase. For example, when using your Capital One VentureOneTM Rewards Credit Card at Exxon Mobil, you could earn 3% cash back on up to $3,000 in combined grocery store spending per quarter.

Or, use it at Home Depot® to get 5% cash back. Get rewarded: You can maximize rewards even if you’re not racking them up from day one by opening a new account with both of these cards and then switching between them each month depending on which categories will yield the most points. That way, you’ll be able to rack up miles for free flights faster than ever!

2) Pay on time

The first credit card tip is to always make sure you pay your credit card bill on time. Being late with a payment will not only hurt your credit score, it may also incur late fees and interest. In the long-term, this can be costly and affect your ability to qualify for new credit in the future.

The second credit card tip is to keep your balance below 30% of your total limit at any given time. If you have a $1,000 limit on your card, then do not carry a balance of more than $300 at any given time – that’s 30% of $1,000! The third credit card tip is to call your credit card company if you think an error has been made on your account. Ask questions before deciding how to handle it.

For example, if they mistakenly charged you twice for something: ask what they want you to do about the charges before making any decision. If they want you to cover the cost, don’t do it without talking to them first. They might simply refund one charge or remove the charge entirely. If not, dispute the fraudulent charge so that your account remains in good standing while you are looking into getting reimbursed by the merchant who processed that purchase incorrectly.

The fourth credit card tip is to avoid opening too many cards at once, which can lead to credit problems down the road.

3) Try not to use your cards too much

1. Keep your balances low. 

2. Never carry a balance over from one month to the next, if you can help it. If you do, make sure it’s at the very least 2% of your card limit so that you don’t incur interest charges. 

3. Try not to apply for too many cards at once or too often. 

4. Use your credit card responsibly; only make necessary purchases and always pay off what you owe each month on time and in full (in fact, paying more than the minimum payment is better) so that your score will gradually increase as your history of responsible use builds up over time (don’t forget this also means keeping track of any account closures).

If you need to transfer an outstanding balance from a high-interest loan such as a student loan or payday loan, consider transferring it to another card with an introductory 0% APR for 12 months like the Chase Slate® Balance Transfer Offer. It’ll take some effort to maintain good standing but it’ll be worth it when you see how much money you’re saving!

4) Don’t close unused cards

Don’t close unused cards. All credit card activity, even if it’s not from you, helps your credit score. The FICO® Score is a type of credit score lenders and other companies use when deciding whether or not to lend you money. It’s based on the information in your credit report, including any balances, late payments, and how long you’ve been using the account.

Closing an unused card may make your available credit look lower than it really is, which can have a negative effect on your score. Keep cards open but don’t overdo it: When you start using more than one credit card, be sure to spread out the amount of balance you owe between them instead of loading up on one card. If your creditor cancels a card you use for a lot of things, your credit score may drop rapidly. Keep at least two accounts open for safety purposes.

Be mindful about where you’re shopping: Some stores offer what’s called credit protection – meaning if something happens to your purchase (like if they break or get lost), they’ll replace it. That’s a great thing, but they usually require you to sign up for the store’s credit card. And while these cards often come with perks like rewards points and discounts, opening too many new lines of credit can actually hurt your credit score so keep that in mind when making decisions about where you’re shopping.

5) Continue building your score

1. Pay your bill on time. One of the most important parts of building credit is making sure that you’re paying your bills on time every month. If you’re not, then it might be difficult for you to get a loan or a credit card in the future, since lenders will look at your history and see that you pay late all the time.

2. Keep your balance low. Just like with everything else in life, using less than what’s available will make it easier for you to manage everything and stay organized. If you have a $10,000 limit on your card and spend only $6,000 per month, then that shows potential lenders that you know how to handle money responsibly and won’t overspend if they extend credit to you in the future.

3.Never bring a balance from one month to an additional. If you use your credit card and don’t repay it by the due date, then this will negatively affect your score; however, even if you don’t intend to carry a balance but end up doing so because of an emergency expense or something similar, try as hard as possible to repay it immediately so that the account remains open without any interest being charged for as long as possible.

4. Avoid opening too many cards at once; keep them separate: Don’t open several cards at once thinking that it’ll help you build better credit faster because this can actually hurt your score instead.