Credit score can increase with the good use of credit cards

A good credit score It's not just something to brag about; can help you secure a favorable interest rate when you apply for a mortgage, a car loan or a new credit card.

There are many ways to improve your credit score, including paying your bills on time and contracting multiple lines of credit. If you're working to improve your score, the most efficient course of action may be to use one or more credit cards responsibly. One or two cards can help you achieve multiple goals and gradually improve your credit score.

Using credit cards to improve your credit score
Here are five ways using a credit card can positively impact the things that determine your credit score, from payment history to the length of your credit history.

1. Make your monthly credit card payments on time
Paying all your bills when they are due, including your credit card bill, is the easiest way to increase your credit score. This task falls under the “payment history” category, which represents the 35% of your credit score.

2. Keep a small balance to lower your credit utilization ratio
The credit utilization ratio is the relationship between the amount of credit you can use and the amount of credit you are using. It is the balance you have on your credit cards in relation to your credit spending limit on all credit card accounts you have open.

3. Increase your spending limit to lower your credit utilization ratio
How do you increase the usage limit? You should be able to call the credit card company's customer service number to request the change. When I made this call, it took less than 10 minutes. You can't guarantee they'll say yes, but you won't be penalized for asking.

Read More: Learn how it works and how to increase your credit score

If you think raising your spending limit will tempt you to overspend, you should refrain from raising the limit. This will not only cause you to accumulate debt, but your credit score it could also go down if you can't afford to make payments to keep your balance down.

4. Keep the same card open for a long time
This strategy falls under "length of credit history," which makes up 15% of your score. If you're tired of paying off your credit card, you may be tempted to cancel the card entirely. This might be the right move for you, but if your end goal is to build credit, you may want to reconsider.

5. Negotiate a lower APR on your card
If you find yourself in a situation where you can't pay your card balance in full each month, your balance accrues interest – unless you have an introductory APR offer. If your card's annual percentage rate (APR) goes down, you'll pay less interest. This could make it easier for you to pay off your card and/or make payments on time, thus improving your credit score.