Good Credit Habits Can Keep You Out of Trouble

When you are working to build or rebuild your credit history, how you use credit is everything. It is important that you build the right credit habits to develop and maintain a good credit score. But how can you build good credit habits and maintain a good credit score? Taocredit.com can tell you a simple way to accomplish this...




Start out slowly. Make just small charges on your Balance Transfer Cards. Pay the balance in full each month. The goal is to begin building a good credit history and practice good credit habits. Do not use your credit card to buy things you can't afford! The interest you will pay actually makes things less affordable.

One way you can practice safe credit card use is to use it to pay a small monthly subscription or other recurring bill, something around $20 or less, and pay off your entire balance each month. For at least six months, let this be the only charge you make with your credit card. This will get you in the habit of staying below your credit limit, and of paying your balance in full every month. These are two habits that will help keep your credit score high.



After you have gotten into the habit of paying your bill in full, you can begin using your credit card to make small purchases other than the subscriptions discussed earlier. Continue to keep your balance low, perhaps using 30% of your credit limit or less. Your balance should never rise above $30 on a credit card with a limit of $100. When you make a credit card purchase, put the money with which to pay it offaside, immediately, so you will not spend it before your bill comes. Then, when it is time to pay your credit card bill, you already have payment.



As you use your credit card the right way, your creditors will likely increase your credit limits, allowing you to charge more on your card. If you decide to use this additional borrowing ability, just continue to stay within 30% of your limit.



Because credit cards do not come with manuals for wise use, I wrote down my best strategies for using credit cards, and maintaining a high credit score. You may have already learned the hard way about the devastating effects of credit misuse, but it is never too late to start over!

Want to apply credit cards? Just come to Taocredit.com.