I read somewhere that getting a credit card can improve my credit score. Can anyone confirm this statement?
Getting a credit card can definitely help improve your credit score, but only if you manage it wisely. When I got my first card, I focused on a few key habits that really made a difference.
These are some simple tricks to maintain a good credit score:
- Payment history makes up about 35% of your credit score, so my priority is to never miss a due date. I either pay the full balance or at least the minimum amount before the deadline.
- I ensure not to use more than 30% of my credit limit. For example, with a ₹50,000 limit, I kept my monthly spending under ₹15,000. This helped avoid the impression that I was over-relying on credit.
- Using a credit card added variety to my credit profile and, over time, it helped increase the average age of my accounts. Both of these are helpful to positively impact your score.
When you apply for a new credit card, your credit score will dip slightly due to the hard inquiry. However, that is temporary; with responsible usage, your score will bounce back quickly.