If you want to end your bad credit, one of the things you can do is use your credit cards responsibly. If you can demonstrate to the major credit bureaus that you have the ability to handle debt well and make your payments on time, you will start to see improvements in your credit score.
Here are six ways you can use credit cards to put an end to your bad credit:
Learn What Your Credit Limits Are
One of the biggest indications of someone who is in trouble with debt is someone who has maxed out their credit cards. If you don’t know what your credit limits are, it’s a good idea to talk to the company that issued your credit cards and inquire about them. Having this information on hand can help you control your debt utilization.
Have a Budget
Knowing how much you spend before you pay off your bills and debts is a good way to keep track of your expenses. Plus, budgeting is a wonderful habit that helps many people grow financially. Only charge an amount to your credit card that you know you’ll be able to pay off before the end of your billing cycle.
Set a Bill Payment Reminder
If you can’t keep track of your bills and their due dates on your own, you might consider setting a reminder on your calendar or phone. Having these reminders pop up is a wonderful way to help you avoid unwanted late fees. One of the most common reasons for poor credit scores is late payments.
Take Control Of Your Credit Card Bills
One thing you should try and avoid is carrying a balance on your credit cards, as it can make it much harder to build a good score. Instead, you might consider making many payments throughout the month so you don’t feel like you’re taking on a heavy burden all at once.
If you’re unable to repay your bill in full, DO NOT continue making more charges with your credit card.
Avoid Hard Inquiries On Your Credit Report
When applying for a new loan or credit card, the bank must conduct a hard inquiry. If you have too many hard inquiries on your credit report, they can negatively impact your score, which is why you should try and limit them.
Limit Your Credit Utilization
Your Credit Utilization Ratio is a measurement of debt vs. available credit. Typically, this ratio is expressed as a percentage. Ideally, you should try and keep this ratio below 10%, though anywhere from 10-29% is still considered good.
Beyond credit cards, you might consider using tradelines to boost your credit score.
If you are looking for older, high-quality tradelines to help boost your credit score, Personal Tradelines can help you. To get an assessment on the tradelines that can best help you, make sure to get in contact with us here at Personal Tradelines. We look forward to helping you reach your financial goals as a creditworthy consumer.