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  • Writer's pictureDonnelle Brooks

Will using a credit card build my credit score?

Yes, using a credit card responsibly can indeed help you build and improve your credit score. Your credit score is a numerical representation of your creditworthiness, which lenders use to assess how likely you are to repay borrowed money. Using a credit card in a responsible manner can demonstrate to lenders that you are a trustworthy borrower, thereby positively affecting your credit score over time.


Here's how using a credit card can contribute to building your credit score:


Payment History

Paying your credit card bills on time is one of the most significant factors affecting your credit score. Consistently making timely payments shows lenders that you are reliable and capable of managing your debt obligations responsibly.


Credit Utilisation

Credit utilisation refers to the ratio of your credit card balances to your credit limits. Keeping your credit utilisation low (generally below 30%) indicates that you are not overly reliant on credit and can manage your finances effectively. This responsible utilisation demonstrates your ability to handle credit and positively impacts your credit score.



Length of Credit History

The length of time your credit accounts have been open contributes to your credit score. Using a credit card and keeping the account open over time adds to the length of your credit history, which can improve your score. It's generally advisable to maintain older credit accounts if they're in good standing.


Types of Credit

Having a mix of different types of credit, such as credit cards and loans, can positively influence your credit score. Using and managing a credit card diversifies your credit portfolio and showcases your ability to handle different credit types responsibly.


Building a Positive Track Record

Responsible credit card use creates a positive track record of managing debt. Lenders are more likely to approve you for larger loans, such as mortgages or auto loans, if you have a history of handling credit card debt well.


Credit Limit Increases

As you demonstrate responsible credit card use, your credit card issuer may offer you credit limit increases. This can improve your credit utilisation ratio and positively impact your credit score, as long as you continue to use the additional credit responsibly.


Avoiding Negative Marks

Using a credit card responsibly can help you avoid negative marks on your credit report, such as late payments, defaults, or charge-offs. These negative marks can significantly lower your credit score and take time to recover from.



Important Considerations when using a credit card to build your credit rating

While using a credit card can be beneficial for building credit, it's crucial to use it responsibly:

  • Always pay your credit card bills on time.

  • Avoid carrying high balances on your credit cards.

  • Aim to pay your balance in full each month to avoid high interest charges.

  • Only use credit for purchases you can afford to pay back.

  • Regularly monitor your credit reports to ensure accuracy and detect any potential issues.


In conclusion, using a credit card responsibly can help you build a positive credit history and improve your credit score over time. By making timely payments, managing your credit utilisation, and maintaining a responsible credit card usage pattern, you can demonstrate your creditworthiness to lenders and pave the way for better financial opportunities.

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