May 11 2016
Raise your credit with No interest Credit Cards
The credit scores is the numerical figure that will reflect your credit worthiness. This credit score will help you approach banks for loans. These credit scores is a result of the credit you have taken from sources and repaid them back. If you are a dormant customer, you will have problems getting loans from banks since you do not have a credible credit score. In this section we will take a look at how to use no interest credit cards to raise your credit score.
How to raise your credit score with no interest credit cards:
- Pay on time and in full
This is the most important aspect while increasing your credit score using a no interest credit cards. Paying in full reflects that you have the potential to repay loans to the fullest amount. Also paying on time will help you build your credibility as a borrower. Banks will not hesitate while they provide you with no interest credit cardsif you are a punctual re-payer.
- Pay monthly
Most of the banks offer loans that can be paid in a monthly installment as well as in yearly installments. It is better to repay the banks with monthly installments rather than yearly installments since your credit score is revised every month. Paying yearly will increase your credit score at the time of payment and not that effectively as monthly payments like no interest credit cards will do.
- Treat your no interest credit card like a debit card.
One of the biggest flaws with credit cards is that the amount of the purchases is not deducted from your account until you make the payment. Thus if you do not use your account wisely, you may forget the previous transactions which will leave you clueless. Thus use the credit card although it may be a no interest credit card like a debit card.
- Keep the balance to the minimum
While deciding your credit score, the balance that you owe to the banks accounts for 30% of your credit score. Thus you need to keep this balance to the minimum while trying to increase your credit score. The higher the credit utilization of your no interest credit cards, the higher will be the probability that you may miss out on payments.
- Keep activated accounts
You need to keep your accounts open for longer durations to improve your credibility. Hopping to new no interest credit cards for renewed services will put a stop to your credit score or hamper it.
Finial thoughts on no interest credit cards:
These credit cards are a great option while getting your credit score up. The above techniques will help you increase your credit score if you abide by them. A credit score of around 600 is decent enough to get you bank loans you desire. It is always better to use a debit card for these purposes since it puts a restraint on your spending potential.