Post On: October 14, 2016

We all know the benefits of having a higher credit score; you can get access to more financing products and get more favorable interest rates. But getting your credit score high enough to see the benefits can seem like a daunting feat.

But, you’re in luck! Even if your credit is only good or fair, you can still find a great card to use to boost your credit rating.

How do you use a credit card to raise your score?

The easiest way to raise your credit score is by acting like a responsible borrower. Once you have your new card in hand, make it a point to use it sparingly. You also want to pay the balance in full every month.

Not sure where to begin? Here’s an easy five-step process to help you raise your score.

1. Take one of your monthly utility bills, like water or electricity bill

2. Instead of paying it how you normally do, use your new credit card

3. Once the charge posts to your credit card, pay it off with the money you would have used to pay it before

4. Don’t use the card for anything else

5. Watch your credit score improve!

Building a good credit score involves many factors. One of the big ones is keeping your debt to income ratio low and by showing you can pay back what you borrow. By using the card solely for a small purchase, and paying off the balance every month, you are doing both!

Since you are spending the same amount as before (because you aren’t paying any interest when you pay the card off every month), you can improve your score without changing anything else.

One of the best parts is, by selecting the right card, you can earn rewards points while you improve your credit score. Here are three great cards to help you get started.

JetBlue Card

Just because you don’t have excellent credit (yet!) that doesn’t mean you can’t get a high-quality travel rewards card. The JetBlue Card gives you 5,000 bonus points after spending at least $1,000 in the first 90 days. You also earn points at the following rates:

• 3 points per $1 on JetBlue purchases

• 2 points per $1 at grocery stores and restaurants

• 1 point per $1 on everything else

The points go deposited into your TrueBlue account, and they don’t expire. And the best part yet, family members can pool their points to increase their rewards power.

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Before you worry about not being able to choose the flights you want, The JetBlue Card features:

• No blackout dates on JetBlue-operated flights

• Choose any available seat

• Fly at any time

You also get 50% off of eligible in-flight purchases, and there are no foreign transaction fees. You also get a 0% introductory APR for the first 12 billing cycles on balance transfers, allowing you to transfer higher interest balances for immediate cost savings.

Barclaycard CashForward™ World MasterCard®

For cash back benefits that are easy to follow, the Barclaycard CashForward™ World MasterCard® is excellent choice. Cash back is earned at a rate of 1.5% on every purchase, and there are no confusing categories from which to choose. Other benefits include:

• $100 cash rewards bonus after spending $500 in the first 90 days

• 5% cash rewards redemption bonus

• 0% introductory APR for the first 15 months on balance transfer

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Your rewards never expire as long as you keep your account active and in good standing. You can also choose how to use your cash rewards. Trade them in for:

• Bank account deposits

• Statement credits

• Gift cards

With the Barclaycard CashForward™ World MasterCard® you can enjoy simplified cash back options and work towards a higher credit rating at the same time.

Want More Tips to Raise Your Credit Score?

One thing you should do every year is review your credit reports. You can get one free copy a year from all of the major credit bureaus. Take the time to examine the information and look for any errors. If an account shows incorrectly, then contact the credit bureau to begin the process of getting it fixed.

Errors on your credit report can negatively affect your score, so getting them corrected can lead to an immediate credit score boost.

You should also keep all of your current cards open, even when you get the new one. Not only will this help your credit utilization ratio, but it also lengths the average time you have held your accounts. Long-term relationships reflect positively on your credit score, so they are worth keeping around.

 

Editorial Note: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.

Have a question? Ask our Credit Card Expert at Silver credit, Christophe Ochin, or email him directly at: [email protected]