Credit cardholders blame credit cards for having a poor credit score and getting more debt. But this is not true as the debt cycle, and low credit scores result from poor financial discipline. It is the cardholder who is to be blamed here. You must know a credit card is an effective tool in boosting your credit score. If you face a challenge with it, you can consider getting CPN tradelines to boost your credit score.
How can credit cards be helpful?
1. Keep the card active and payments timely
By paying the bills before or by the due date, you can boost your credit score. It is the payment history that accounts for about 35% of the credit score. Late payment of 30 days will affect your credit score for years. But once you have proven that you are making prompt payments for an extended period, you can contact the credit company to remove the demerits.
Further, many people think closing the credit cards that are no longer in use will help them increase their credit score. This is far from reality. This strategy accounts for about 15% of the total credit score. Remember, you might have made payments to the lenders from old credit cards. This means you would have a good credit report. Therefore, by closing the card, you are giving up the opportunity to enjoy a good credit score.
2. Reduce your credit utilization ratio
The ratio here is the amount of credit available and the amount of credit you are using. It is vital to remember that the balance of this factor accounts for 30% of the credit score. Herein it is essential to reduce the credit utilization ratio. For this, you must avoid overcharging the card. Also, make sure to pay the total debt balance timely.
Even though you might have a big spending limit, you must not use it. It will be wise to have some control over the spending limit. The credit utilization ratio will be lower when you have a big spending limit and a low balance. If you think it will be a temptation for you to overspend, then make sure you avoid increasing the limit as this will accumulate debt, and you might end up with a poor credit score.
Take professional assistance
If you face a challenge in boosting your credit score using your credit card, you can consider contacting a reliable company to purchase authorized user tradelines. It is yet another effective and reliable way of boosting the credit report over a period of time. Authorized User, LLC can offer you the best assistance. We will customize the package to suit your specific condition. Our professionals will analyze the situation and guarantee you get the right package deal to improve your credit score.
Contact us for information.