How Credit Cards Affect Your Credit Score
Jun
29
How you use your credit card can either significantly improve your credit or ruin it.
Over the two and half years that my husband and I have been married we have only used our credit cards a few times and paid it off when we got the bill. Using your credit card sparingly and paying the bill on time can greatly increase your credit. My business finance teacher also said that if you are behind on your bill for a few months and then pay the bill in full, even thought it is late can increase your credit score as it shows that even if you get behind you will still pay the full amount you owe.
Credit Cards are often thought of as quick and easy money, this thought can be dangerous for your credit score. Overusing credit cards with money you don’t have can be the quickest route to getting yourself into debt. A person who has credit card debt and is not able to pay the bill each month is most likely going to find that the only loans they can get accepted for are ones with outrageously high interest rates and find that owning a car or house will be very difficult for them.
It is important to compare credit cards before signing up for a credit card. There are many options available such as cards that have 0% balance transfers and also cards that can earn you cash or rewards for using them. Ideally a person should only have one or two credit cards. A financial advisor told me that signing up for multiple credit cards even if you don’t use them can decrease your credit score.