A good credit score not only helps you get a good credit card, it also helps you use the card to improve your score.
Apart from paying credit balances on time, here are five ways you can use a credit card to build good credit.
1. Pick the right type of card: Choose what suits your needs and your situation. Use it wisely to build your credit.
2. Set up automated payments: This ensures you don't miss payments. Keep enough money in your account.
3. Open a second card: Do this only if you're confident in paying on time and already have built positive credit.
4. Get a credit limit increase: Boost your score by increasing the line of credit on your existing card.
5. Become an authorized user: Piggyback on someone else's account who already uses their credit responsibly.
While you may get good deals on credit cards, using it for the reverse – to boost your credit score – also works.
Before you take these steps, review your current financial condition and only move ahead if you are confident.