Credit Card Habits to Adopt – Four Good Credit Card Habits to Adopt

Getting a good credit score is one of the best strategies to take when you want to look further into the credit card or loaning business. that is why you need some Credit Card Habits to Adopt. What a good credit score does is to help you acquire loans far quicker than others. It also helps you build trust between you and the borrower. I have outlined some strategies here that would help you get a better credit score. Below is how you can make the most of credit cards to improve your score.

Credit Card Habits to Adopt

Make Timely Payments

Every time you delay in making timely pay­ment, it adversely af­fects your credit score. Our advice is that you make full (or maxi­mum, if not full) pay­ment as it’ll help avoid unnecessary interest deductions. Moreover, delay in making pay­ments on time is viewed negatively by lenders. You may opt to give standing instruc­tions to your bank and sign up for electronic clearing services (ECS) so that you can clear-off your debts on time even if it is compara­tively a smaller amount.

Close Unused Cards – Four Credit Card Habits to Adopt

If you don’t use a card, you’re not likely to keep it in your wallet; you’d keep it away in a cupboard. There are chances of the card getting misplaced or landing in wrong hands and being misused, thereby negatively impacting your credit score. Don’t risk it. Close the card if you’re sure of not using it.

Limit The Number Of Credit Cards

Although there is no cap on the number of credit cards one can have, try not to get one at the drop of a hat! Before taking a new card, check whether you really need it and if the bene­fits offered are already present in your current cards. Ideally, three to five cards are more than enough. Anything more than this reflects poor financial management and high borrow­ing tendency. 

Track Your Balance

Crossing your credit limit can pull down your credit score even if you pay your bills in full. Keep a note of where you use your credit cards and for how much amount. Try to keep the usage below 50% of the cred­it line. This will help prevent your credit score from dipping.

My advice to you is to be wise whenever you are dealing with credit cards as it goes a long way in affecting your credit history. I assure that if you follow the guides I outlined above, your credit score would improve drastically in just three months.

Also Read: Best Credit Cards in 2019

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