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What Credit Card Raises Your Credit Score Faster

To say that a certain type of credit card is a credit score booster, with magical force and immediate effect, will be as far from the truth as Earth is from the Moon. Instead, it is better to repair your credit score by using your credit card regularly and responsibly.

You will also need to find a credit card that will help increase your credit score. Remember that you canít boost your credit score if you donít take credit. Living on cash is great but has nothing to do with credit history. In fact, your credit reports might stop generating credit scores.

Latest statistical data shows that the global number of consumers with tarnished credit score is rapidly increasing, especially since the credit crunch set in the late 2007. According to information by the big credit bureaus, people with a credit card score under 620 find it increasingly difficult to get a consumer loan or a credit card under reasonable terms.

Before you start working to improve your credit score, you need to first find out where you stand on the credit standings. Things are really serious if your FICO score has slumped to 350 and below, but these easy steps can help you fix it.

Pay off Old Credit

Pay off your old credit cards so that you could later request their cancellation. You have to understand that cards with outdated and therefore unprofitable bonus and cashback programs can be a real credit burden.

Pay above Required Minimum

Use about thirty percent of the balance on your credit card and pay off slightly above the requested minimum each month. This strategy will really help boost your credit score, while a responsible financial attitude makes you a good and reliable payer in the eyes of your creditors.

Find and Use Credit Card Regularly

If you are looking for a credit card that will help increase your credit score, it is best to choose from the major credit cards. If you are a newcomer to borrowing, get a gas or retail card that will build your credit history. Then you need a big kahuna: American Express, MasterCard, Discover, or Visa. If you donít qualify for an unsecured credit card, opt for its secured version. It will help you build credit history on condition that you make regular payments. Make sure that you apply for a secured credit card that can convert to an unsecured one, after you use it for 12 to 18 months. It is important to check if the card reports to the three major credit bureaus. Use your credit card regularly and whenever you can - at gas stations, big supermarkets, department stores, etc. Remember that the use-it-or-lose-it strategy applies to credit cards as well. On the other hand, you donít have to max out your credit card, as this may incur a heavy blow on your credit score.

Make Payments Religiously

Never miss a payment on your credit card balance. Note that paying off your balance in full each month isnít a good idea: such a strategy will hardly help you boost your credit score.

Consider Your Credit Card Limit

Typically, the holders of credit cards with high limits are more likely to get a higher credit score from the credit bureaus. Ask your lender to report the actual limit of your credit card to the credit bureaus.

Finally, do not wait for the deadline to pay off your monthly credit card balance. Itís much wiser to make a payment to your credit card company at least one week before the deadline.