Having a credit card can come in handy in cases of emergency or when you want to make large purchases. It’s always advisable to apply for credit cards if you need them and plan on using them wisely.
You should only fill out an application for a credit card that meets your needs.
What is your credit record?
Your credit record is based on information about your credit card history, loan history, as well as any other debt accounts listed in your credit report. This record is used by creditors to determine whether you can afford to take on more debt or not.
How credit cards affect your credit record:
Every time you apply for a credit card or loan, your credit record is affected. Opening a new credit card could boost your credit score if it’s your first credit card. If your application is denied however, this will have an adverse effect on your credit record.
You should make sure that you report any errors on your credit report. The sooner you get them fixed, the better this will be for your credit record.
To maintain a good credit record you should make sure that you pay your credit card bill on time. Never skip any payments either.
A possible way to improve your credit record is by paying more than the minimum monthly balance on your credit card.
It’s also a good idea to pay down the credit card that’s closest to its limit first. By paying down your balances you could improve your credit score in the long run.
Your credit utilization should ideally be low- this demonstrates that you can use credit responsibly.
Make sure that you don’t exceed your credit limit either- this is likely to raise red flags.
TransUnion offers free credit record checks, click here.