3 Ways to utilize your credit card to improve your credit score

Credit is everything

Your credit score is one of the most important aspects that affects your everyday life. A good or poor credit score can determine whether or not you qualify for a home, car, loan, business space, and in some cases even a job. Despite there being a lot of pressure associated with managing one’s credit, doing so can be quite simple as long as you don’t attempt to bite off more than you can chew. One of the best ways to help improve your credit score is to sign up for and utilize a credit card. Depending on how well you manage them, credit cards can either be your best friend or worse enemy. In the right hands a credit card can help elevate your score to heights that will allow you to prosper financially. Nazpay one of the leading payroll processing companies is here to help. Make the most out of your credit card with Nazpay’s “Three ways to improve your credit score”.

Number 1: Pay your bill on time and in full

We’re all human, meaning that we’re doomed to forget things and be late from time to time. Unfortunately this can prove fatal when it comes to your credit score. If there’s one that should always be submitted on promptly, it’s your credit card payments. Making your payments on time shows lenders that you’re a reliable borrower, increasing the credit score in the long run. The more payments you make on time, the higher your score and vice versa. Also note that every bill comes with a minimum payment that must be made. It is highly recommended that you always pay a little extra as a way of diminishing your debt quicker.

Number 2: Keep your balance as low as possible

Even though you may have a high credit limit, you must still be mindful of how much you owe. Utilizing a majority of your available credit and not paying it back immediately can severely damage your credit score as lenders may perceive you as someone who misses payments. The longer you owe large some sums of money, the longer your credit score will continue to stagnate or decrease. To prevent this from occurring, try to utilize a moderate amount of your credit and constantly make payments throughout the month to keep your balance low.

Number 3: Keep your existing accounts open and healthy

Lenders appreciate consistency and longevity from their borrowers. A great way to help raise your credit score through the use of a credit card is to keep your accounts open for as long as possible. Instead of jumping from card to card, find one you’re comfortable with and build on that foundation. As long as you continue to make payments in fill and on time, the credit card company will increase your credit limit in addition to other benefits. The longer you keep your current accounts open, the more of a boost your credit score will receive. On the other hand, quickly closing out accounts or constantly opening new ones may cause your score to drop.

One more for good luck: Use your credit card like it’s money in your account

Many people, usually young adults, believe that credit cards = free money, which is where they fall into trouble. Credit cards come with interest and deadlines that must be met. The best way to prevent biting off more than you can chew is to pretend like your credit balance is equal to the money in your checking/saving account. A great rule to follow is “If you can’t afford to pay with cash, you can’t afford pay with a credit card”. Keeping this in mind will help minimize the shock factor that can come from receiving your monthly bill.


And there you have it. By following these simple tips, you’re already halfway there on the road to improving your credit score. Always remember to spend wisely, think responsibly, and pay what you owe on time. For additional information on credit scores or our payroll services feel free to contact us . Also don’t forget to follow Nazpay Inc. on Facebook, Twitter, and LinkedIn and keep a look out for other articles at nazpayinc.com/blog.


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