Creditnet News Story
Improving score can still come through using credit cards
Wednesday, November 25, 2009
By William Davis
When dealing with holiday shopping, there are ways consumers can use their credit card in order to improve their credit score.
When dealing with holiday shopping, there are ways consumers can use their credit card in order to improve their credit score.
According to a recent report from SmartMoney.com, those who are looking to apply for a loan can still use plastic when trying to improve their credit score. In order to do so, consumers should probably concentrate on using only one card during the season, and should pick the one with the highest limit.
"Picking the card with the highest limit will keep your utilization ratios low," the report noted.
Credit utilization ratios are one of the things that go toward calculating a person's credit score and are determined by looking at how much credit a consumer has against how much they use. Most experts advise that consumers keep their utilization ratio to no more than 30 percent of their available credit.
The report noted that if a consumer does plan on making purchases with multiple accounts, they should only do so if they already have balances on them. And they should still pick the cards with the highest available credit limits.
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