Credit card habits that will benefit your credit history
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Credit Card Applications » Research » Guides » Building Credit History » Credit card habits that will benefit your credit history

Credit card habits that will benefit your credit history


Updated: December 26, 2012

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Building a good credit card history is all about making the right habits. A lot of things depend on your credit history. Those with excellent credit history are offered the best credit card deals. They also enjoy low premium on their insurance, low interest rates on their personal or housing loans. Even landlords and employers have started looking at the credit cards of the individuals these days. This is because credit card history is a measure of the creditworthiness of the individual. Here are some good habits one should inculcate to improve the credit card history.

Always pay before time

You might be stressed out on the last day and forget paying your credit card bill. You might run out of money because of expenses. There are numerous chances of missing a credit card payment if you insist on waiting till the last date. Instead it is always a good idea to pay the bill of your credit card as soon as you can. Every time you miss your payment, you lose a few points on your credit score and you also incur a late fee which adds to the outstanding balance. Therefore it is not something you would like to take a risk with. In fact you can consider setting up an auto payment from your account if you know what the minimum payment is.

Never charge big payments on your card if you cannot pay

The average revolving debt of all credit card customers is in excess of 2000 dollars. This happens because customers tend to charge to their credit cards, expenses they are fully sure, they wouldn't be able to pay at the end of the month. Therefore, the outstanding balance stays on your card, incurs late fees, accumulates interest and hurts your credit history.

Never seek more credit if you don't really need it

Seeking more credit cards indicates that you are looking for credit. This hurts your credit history. Don't apply for more and more credit cards, if you really don't need them. Secondly don't take balance transfer offers, because they too negative affect your credit rating. Keeping your cards open gives you the benefit of a long credit history. So there is no point in closing old cards unless they are becoming difficult to manage. Lastly it is a good idea, not to go for lower credit limits as that will reduce your credit rating too.

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