5 Easy Tips To Improve Your Credit Score (Through Credit Cards)

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Credit scores are more than just numbers; they are a reflection of your financial health and reliability. Whether you're eyeing a new home, car, or even a personal loan, a high credit score can pave the way to better loan terms and lower interest rates. However, improving this crucial financial indicator might seem daunting to many. Don't worry though, with the right strategies, you can improve your credit score, and it's easier than you think.

If you’re curious about why I’m qualified to write about this: I immigrated to the US in 2016 and have built my credit score from nothing just with a few years, own an investment property and have about 10 credit cards, many in the premium sector. Here’s my full journey!

Table Of Contents

1. Step One: Grab Yourself a Secured Credit Card

2. Double the Fun: Pay Off Your Card Twice a Week

3. Be Bold: Ask for Credit Line Increases Regularly

4. Smart Move: Bank Where You Want Your Credit Card From

5. Slow and Steady: Small Steps to Big Credit Score Wins

1. Step One: Grab Yourself a Secured Credit Card

Don't have a credit history, or looking to rebuild one? A secured credit card can be your savior. Unlike traditional credit cards, secured cards require a refundable security deposit, which determines your credit limit. By responsibly using this card and paying off your balance on time, you can establish a consistent payment history, one of the key components in calculating your credit score.

Here’s 4 Secured Credit Cards I can recommend to get started:

• Citi® Secured Mastercard®

• Monthly reporting to build credit fast

• Security deposit required

• OpenSky® Plus Secured Visa® Credit Card:

• No credit check to apply

• Find out instantly if you’re approved, no credit risk to apply

• Capital One Quicksilver Cash Rewards Credit Card

• You typically need a credit score above 640 for this card so it’s a bit more risky to apply

• earn rewards from the start

• Chime Credit Builder Secured Visa® Credit Card

• No credit check to apply

• No minimum security deposit required

2. Double the Fun: Pay Off Your Card Twice a Week

This approach may sound counterintuitive at first, but it’s a method that works. By using your credit card for all expenses, you create a track record of regular card usage and timely payments. However, the trick lies in paying off your balance not once, but twice a week. This ensures you are maintaining a low credit utilization ratio – another significant factor in your credit score. Remember, credit utilization is the amount of your total credit you use, and it's recommended to keep this number below 30%.

3. Be Bold: Ask for Credit Line Increases Regularly

Most credit card companies allow you to request a credit limit increase after a certain period of responsible card use. Frequently asking for increases can help improve your credit score over time. As your credit limit grows while your spending remains the same, your credit utilization ratio decreases. But remember, this isn't an invitation to spend more; rather, it’s a way to demonstrate your ability to handle credit responsibly.

4. Smart Move: Bank Where You Want Your Credit Card From

If you already have an account with the bank you want a credit card from, your chances of approval may increase. This is because banks often consider their existing customers as lower risk. Plus, managing your bank account responsibly can serve as proof of your financial stability. So, if you’re eyeing a specific bank’s credit card, consider opening a savings or checking account with them first.

Here’s a few examples of strategies I would recommend given a specific ‘dream card’:

1. Capital One Venture X Rewards Credit Card

   1. Get a Capital One 360 Checking Account

   2. Start with Capital One Quicksilver Cash Rewards Credit Card

2. Chase Sapphire Reserve® or Chase Sapphire Preferred® 

1. Get a Chase Checking Account

2. Start with Chase Freedom Unlimited®

3. Citi Premier® Card 

1. Get a Citi Checking Account

2. Start with Citi® Double Cash Card or  Citi Custom Cash℠ Card

4. The Platinum Card® from American Express or American Express® Gold Card

1. Get a American Express® Rewards Checking Account

2. Start with Blue Cash Everyday® Card from American Express

5. Slow and Steady: Small Steps to Big Credit Score Wins

Improving your credit score is not an overnight process. It requires consistent effort, patience, and smart financial decisions. Start with small, manageable actions like paying all bills on time, keeping your credit card balances low, and slowly applying for new credit. Remember, each small step will add up over time and contribute to a healthier credit score.

Can Credit Cards Improve Your Credit Score?