Posted On: October 17, 2016
Your credit score is a reflection of how you use credit. The best part is, you don’t have to use a lot to get a boost in your credit score. That means you can make a lot of headway by using a new card to your full advantage.
In fact, by using only a tiny amount of your available balance, and paying off the entire balance every month, you can raise your score faster than making big purchases and repaying over time.
If you are ready to see your credit score reach new heights, start here.
Pick a Small, Regular Purchase
To help push your score up, the first step is to identify a small purchase you make on a regular basis. For example, if you enjoy a morning latte every day, that can be a great purchase to use. Monthly utility bills are also an excellent choice.
Once you identify your perfect small purchase, use your new credit card to make the purchase instead of your normal payment method.
Make sure to track how much you have spent, as this will be important when you make a payment.
Pay the Card Off Immediately
If you are only using your card for a single small purchase, like the aforementioned utility bill, as soon as the charge makes an appearance on your card you must pay it off immediately. No ifs, no ands, no buts.
For those who choose a small daily purchase, like the morning latte, pay off the balance at least once a week.
By paying it off quickly, you won’t pay any interest on the purchases. That means you aren’t spending any more money than you were before, but you are now using the purchase to build your credit score. If you neglect to pay it off quickly, you’ll owe interest, and that just isn’t worth it.
Credit cards can accept multiple payments during a month, so there is no need to wait for your next statement or due date. Pay it now, and you don’t have to worry about it later.
To make the process even more worthwhile, make sure you use a card with great rewards. Since you won’t be paying interest, you can make other benefits a priority. Collect points for travel, cash back, gift cards, and more.
If you don’t currently have a rewards card, here are some great options to get you started.
If you love to travel the JetBlue Card is a great option to get your flying more often. You’ll earn points everywhere you use the card including:
• 3 points per $1 on JetBlue Purchases
• 2 points per $1 on restaurant and grocery store purchases
• 1 point per $1 on all other purchases
Keep your account in good standing and your points will never expire, and there is no annual fee.
You can enjoy additional benefits like discounts of up to 50% on eligible in-flight purchases such as cocktails and food on JetBlue-operated flights.
Trade your points in for JetBlue flights and enjoy:
• No blackout dates
• No time restrictions
• Unrestricted selection of available seats
Families can pool their points allowing them to maximize their benefits. You also get all of the latest security technology, such as the new chip-card format and $0 Fraud Liability.
If you are currently fighting a balance on a higher interest card, the JetBlue card offers a 0% introductory APR on balance transfers completed within 45 days of your account opening date for a full 12 billing cycles. While that may stray from your small purchase program, the savings can be substantial.
Barclaycard CashForward™ World MasterCard®
The Barclaycard CashForward™ World MasterCard® combines solid cash back rewards with the ability to qualify for $100 in cash rewards as a bonus when you spend $500 in purchases within 90 days of the accounts opening.
You can also enjoy a 15-month 0% introductory APR on balance transfers made within the first 45 days of opening an account.
Additional benefits include:
• Get a $200 cash rewards bonus after you spend $1,000 in purchases in the first 90 days after account opening
• 1.5% cash back on every purchase
• Unlimited cash back earnings potential
• 5% cash rewards redemption bonuses
• No annual fee
This can be an excellent card for the small purchase program, allowing you to earn rewards without it costing you an extra dime.
Barclaycard Ring™ Mastercard®
The Barclaycard Ring™ Mastercard® offers an APR as low as 13.49% variable. This means you can pay less interest over time than many rewards cards offer.
You will also be able to participate in the Giveback program, a unique offering that provides benefits to all users who exhibit responsible borrowing habits. Other card features include:
• No Balance Transfer Fees
• No Annual Fees
• Free FICO Score
If you have a balance on a higher interest card, you can take advantage of the balance transfer option. This allows you to pay less interest on the debt you have today, as well as save on the purchases you make tomorrow.
Barclaycard ArrivalTM Plus World Elite MasterCard®
Sometimes it is best to find a card that makes travel more convenient.
The Barclaycard ArrivalTM Plus World Elite MasterCard® allows you to earn double miles on every purchase.
You also get 50,000 bonus miles if you spend $3,000 on purchases within the first 90 days.
Miles can be traded in for a variety of perks including:
• Travel Costs
• Statement Credits
• Gift Cards
Miles never expire as long as your account is active, and you can enjoy a 0% introductory APR for the first 12 months on Balance Transfers made within 45 days of account opening. Plus, world travelers also enjoy no foreign transaction fees, making this ideal for holidays spent abroad.
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]