How to improve credit score with credit card

How to improve credit score with credit card

You can increase your credit score through the use of yours credit cards. When you use your credit card in day to day life you are affecting the major factors through which your credit score is measured. Using your credit card sensibly is the most accurate way to improve your credit score. Following are some tips to increase your credit score through your credit card.
You must pay your credit card loan as early as possible. As your credit score shows how quickly you repay your debt.  To improve your credit score through credit card, you need to pay the loan before you due time or until time limit.
Some people have this misunderstanding that if they do not use their credit card they will have good credit score rating. But this is not true, it just imply that you have null credit which does not qualify for good credit score rating.  Your installment payment makes up to 35% of your Credit score rating; this is why paying timely is very important. Moreover what you can do is keep your loan amount as low as possible.
According to FICO, your periodic installments account for 30% of your credit score rating. They compare your credit avail with the allowed limit for credit utilization. The higher you have availed your allowed limit; the lower will be your credit rating. In addition to that, it will be difficult to pay your periodic installments on time. If you take small amount of loans, it can increase your credit score rating eventually.

How to check credit card score

You can also check your credit card score. Your credit card account for 70% in your evaluation of credit score. 30% is calculated on the timely payments of the installments and 35% on the credit limit utilization on your credit card. Your payment history is evaluated by observing the credit reports by the lenders. Lenders want to see whether you are consistent and trustworthy to give loan or not.
Payment history is important as it highlights how you would perform in future based on your past routine.  You can use multiple ideas to remind you of your periodic payments. For example you can use auto payments schedule option or installment payment reminder etc. If you have not paid your previous payment, pay them as early as possible. Albeit late payments impact on credit card score at least for seven years, their effect on credit card score diminishes in the long run. Late installments of the past less impact the credit card score than new payments.
You can calculate the credit utilization yourself. It is calculated as credit availed divided by credit limit.
Credit utilization Rate= credit availed\ credit allowed limit * 100
For instance, you have availed 2000$ from your allowed credit limit and 4000% is your total allowed limit; you have 50% credit utilization Ratio. You must keep it under 30% or less than that. Most of the high credit score members used only 7% of credit utilization rate. Credit card utilization is intended to calculate for each card as well as for overall cards on our name.

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