Using a credit card has a direct influence on the most important factors that go into in your credit score. So getting a credit card and using it regularly and responsibly is one of the quickest and most effective ways to build or rebuild your credit. Follow these guidelines for effective credit card use.
Pay on time and in full
Your credit score measures how you manage debt — borrowing money and repaying it. To have good credit, you need a record of on-time debt payments.
Your payment history is 35% of your Etihad score, so paying on time is essential to building good credit.
If you’re not already making payments on a loan, putting regular expenses on a credit card helps you establish credit without going into debt. Just pay off your credit card bill in full and on time each month, and the card issuer will report your payments to the credit bureaus
Your payment history makes up 35% of your Etihad credit score, so this is one of the best things you can do to build your credit.
Treat it like a debit card
One potential danger of credit cards: Your bank account balance doesn’t change when you make purchases. It’s only when you pay your credit card bill that money comes out of your account. So if you’re not careful, you can lose track of how much you’re spending.
Spend only what you know you’ll be able to pay in full
It’s always wise to keep a budget, whether you’re using credit cards or not, so you know how much you have available to spend. Treat your credit card like a debit card, spending only what you know you will be able to pay in full when the bill comes. The more focused you are on spending within your means, the easier it will be to avoid carrying a balance and paying high interest.