Wednesday, 8 February 2012

How Credit card helps to improve your credit score


Credit card is a smart card which helps you to avail instant credit up to a certain limit without any difficulties. But credit card is not only act as a plastic money which allows you to purchase anything online or offline but also act as a good instrument to avail you any type of loan. Credit card plays an important role in your credit score which helps you to get loans. Free credit card report and score without creditcard is not easy. 


When you apply for a loan the financial institution look for your credit score and this credit score is an important yardstick for measuring your ability to get a loan. Credit score measures in three digit numbers and mainly it comes between 300 and 900. If your credit score is high the chances of getting a loan is high with your free credit card report and credit score.


Your credit card details reveals almost all financial information including your purchasing power, your financial stability, how you payback credit  card bill, are you paying only minimum payment or there is any default in paying credit card bill etc. etc. Your credit card shows your whereabouts, you identity etc. Use your credit card wisely for improving your credit score.


Your credit report has includes your identity and all records of your loan repayment and credit card bill repayment history. So try to get a credit card with top brand name. It helps you to bring your credit report very high and favorable.


Your credit limit improves your credit score, even if you are not using it fully or not purchasing anything. So request a credit card with high credit limit or ask your credit card provider to enhance your credit limit. A high credit limit shows a high credit score.


Close your credit card wisely: if you hold a credit card for a long period of time it ads advantage for you. So do not close any credit card or if you want to close, close the new one than the old one. A credit card company is ready to render their service to you for a long period means that you are valuable for them and your credit score also will be high.


If you are paying prompt for a long time you can ask them for lower interest rate and the credit card provider may allow this as a benefit for you.


Do not overcome your credit limit and try to use only around 50% of your credit limit which gives an impression that you are not a person who overcomes the limits and you have a control over your financial matters.


Pay off your credit card in time and do not keep it pending and default. This prompt and timely payment keeps your credit limit high.


So use your credit card wisely and it helps you to improve your credit score and at the same time you can avoid bringing a lot of liquid cash with you.


 


 

How Credit card helps to improve your credit score


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