Credit card habits that will benefit your credit history


ADVERTISING DISCLOSURE: is an independent, advertising-supported web site. receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. has not reviewed all available credit card offers in the marketplace.

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

The content is accurate at the time of publication and is subject to change.

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.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Top 5 Cards for Travel from Our Partners: Summer 2018 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Summer 2018 – Expert’s Choice

Posted: February 12, 2018

The sun shines more and more each day, flowers are in bloom and you already feel how hot it is getting - summer is here. Summer holidays are almost here, and you are in need of dire preparation. You can lift in spirits and let CreditLand ... Continue reading
Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Posted: February 10, 2018

If you're trying to find the perfect rewards credit card, you might feel like you're drowning in options. There are just so many out there, and many of them look similar. This can make it tough to decide on a card. One thing people often ... Continue reading
Price Protection: Credit Cards That Will Refund a Price Drop

Price Protection: Credit Cards That Will Refund a Price Drop

Posted: February 8, 2018

Those who often find themselves buying stuff and then discovering that they could pay less for the same item they've just bought, will appreciate this credit card benefit – price protection. This is the least known and the most neglected ... Continue reading
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!