Improve Credit Score With Credit Cards
The FICO credit scores are calculated using information about what kind of credit you have, how much of your available credit you use, and how you pay the debt you have. Oddly enough, it doesn’t care much about your income or where you work - just what you do with the money you borrow and how much of your available funds you have charged.
Most people hurt their credit scores by utilizing too much of their available funds. For example, if all of your credit cards combined have an available spending limit of $8,000 and you usually have about $6,500 in credit card debt each month, you’re using a large percentage of your available money and therefore your credit score is negatively affected by that.
One way to start raising your credit score using your existing credit cards, is to ask your credit card companies to raise your credit limit (without checking your credit report). If you’ve been making your payments on time, chances are the credit card company will do this for you. As you increase the amount of money you have available, and continue to pay down the amount of money you owe, you’ll see your credit score go up. Just be sure not to start charging more because you have more room on your card(s) to charge!
