Can Your Credit Card Improve Credit Scores?

A credit card will improve credit under certain circumstances:

  • The credit card cannot be maxed out:  The total amount of debt a person owes will impact their credit score. Being able to show consistent, on time, payments is an important part of using a credit card to improve credit. If possible, pay off the balance in full each month, or keep the total amount of debt on the card to a minimum. It is important to remember late payments and high balances for extended periods of time will hinder credit.
  • Credit card must remain open for a period of time: The credit card will not start to improve the credit score of an individual until it has been opened for at least 6 months. With a brand new account, a credit score is likely to suffer, to prevent people from overloading themselves with several brand new accounts at once. During the first six months, people will be able to establish good credit through keeping moderate balances and making on time payments.
  • Secured credit cards help: For those with less than perfect credit scores, credit help is available through secured credit cards--those with an annual fee--to give people the chance to build credit. If credit still is not extended, there are credit services designed to help improve credit scores through lessening the amount of debt.

View all 3 of your FREE Credit Scores

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