Credit Cards and Improving Your Credit Score
Your credit score affects all aspects of your financial life. How much you pay for your home, car and other big purchases, how much your insurance is, among other things. So, financially speaking, improving your credit score is in your best interest.
Credit Cards Can Improve Credit
If you’re looking to improve your credit score, opening a credit card or two may be just the ticket. Having at least two credit cards and keeping the balances low compared to your limit will help to improve your credit score. Make regular, one-time payments to your account and it is likely the credit card company will increase your limit. Lenders like to see high limits with low balances, because it demonstrates you are trustworthy and responsible.
Low Credit Scores
If you have a low credit score, especially lower than 600, you may want to quickly get a copy of your credit report and see where you can improve your score. There are many avenues you can take to clear up your credit, such as working with a credit repair company or scheduling regular payments.
Opening a credit card can be one of the best decisions from a financial standpoint, so make sure you have everything in order so you can start building your credit.