Choose the right credit cards to improve your credit score

His credit score it's a key indicator of your financial well-being and the risk you pose to lenders. The responsible use of a credit card with no credit history helps you get a foot in the door of good credit. To build a positive track record, pay your bills before the due date. Also, try to keep the balance less than 20% to 30% of the card's limit.

Becoming an authorized user on a parent's credit card with no credit history is a common way young people get started with credit. As long as the cardholder pays bills on time and keeps the utilization rate low, an authorized user should see a positive effect on their credit score.

Credit card issuers may be more lenient when evaluating the income and credit history of student card applicants. However, this leniency is generally not applied when evaluating the finances of applicants for Credit cards standard.

How to improve your credit score!

Look for no-annuity credit cards that reward your spending patterns. If you buy a lot of gasoline, for example, a card that pays 5% cash back on fuel purchases will serve you well. 

If you're just getting started with credit (or are recovering from bankruptcy), a secured card is better. This type of product requires you to make a deposit as a guarantee. Thus, it can help you build a credit history and score. 

Cash back cards often allow you to use the rewards you've accumulated as statement credits for purchases. By doing this, your bill is reduced. A card that has an annual fee may be worth it. Still, first do the math to decide if the rewards you earn will exceed the fee.

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Retailers can offer you attractive discounts if you sign up for credit cards without checking their store's desk. Also, retail cards are often easier to obtain than other cards. But keep in mind that both cards often have low credit limits. That means your credit utilization could easily exceed the 30%'s recommended mark when you use the card to make purchases.

As you learn the ropes, make a few basic purchases on a monthly basis, eg. Buy grocery items, to ensure you can pay the bill in full and avoid carrying a balance month to month, which earns interest. The percentage of available credit you use on your credit cards with no credit history is known as your credit utilization ratio, and the lower it is, the better your credit score.