Improving your credit score requires that you have a better credit history and for many people with a bad credit score, there is uncertainty about how to do just that. However, you can use one credit card to improve your credit history, thus improving your credit score.
Many people that may owe a lot of money are often tempted to close credit card accounts, but if you just move debt around, close credit accounts, yet still owe the same total, you are going to do nothing to improve your credit score. Getting out from under mountains of debt is the first big step to improving your credit score.
However, if you have taken the steps to get out of debt and you’re more concerned with the bad credit score following you around, you, again can use one credit card to improve your credit score. Obviously, making payments on time for big sources of debt like a mortgage or car loan will help your credit score. Yet, using a credit card, sometimes older credit cards work better since there is a lot of credit history attached to them, can help improve your credit history.
Making purchases on a credit card and then paying off those purchases on time will help your credit score. The problem many people have is they assume they will have the money to pay off a credit card bill and an unexpected expense arises and they miss a payment. So, make purchases on one credit card, but put the money for the purchase away so that you can simply pay off the credit card bill when it’s due.
If you have multiple credit cards you may want to make similar, small purchases every so often, but when it comes down to is if you make smart credit card purchases, pay your bills on time, and budget your finances correctly, you will develop a better credit history and score over time.