5 Steps to Using Your Credit Card Wisely

1.       Do not max out your credit cards every month.  This is a red flag for lenders.  In fact, it is good practice to use no more than 30% of your allotted credit limit.

2.       Since 15% of your score is based on the age of your credit history, it is important to not close out your most seasoned accounts.  In fact, it is better to leave an account open and not use it then to cancel it.

3.       When possible, pay off your full balance on the credit card each month, or as close to zero as you can.  This will help you to have a better score and to stay in control.  By building this discipline you will avoid falling deeper into debt as well.

4.       Increase your credit limit and you will also improve your debt to credit ratio.  This in turn will improve your score, but only take on what you can handle.  The last thing you want is to obtain high credit limits and then max out your cards.  

5.       Try to open at least an account or two with major carriers such as Visa, MasterCard, etc.  You will be perceived  as a lower credit risk.