Lesson #2: How Credit Card Use Affects Your Credit Score




Rules for Credit Card Use to Increase & Maintain an Excellent Credit Score:

Most people don’t know that 35% of your Credit Score comes from use of Credit Cards.

Yes, that means you have to have Credit Cards and use them WISELY, otherwise you could be damaging 1/3 of your score!!!

Here are 7 rules that will help you INCREASE & Maintain an Excellent Credit Score:

  1. Have no more than 3 to 5 cards (preferably not dept. store cards).
  2. Should have at least 4 yrs of history.
  3. Never open & close multiple cards — this will lower your score. If you need to close cards, close 1 every 3 months.
  4. Use each card every month if you can. Use the cards in place of cash or debit cards and then just pay cards with cash from bank account.
  5. Not using cards for several months will cause your score to drop – no credit use – no way to score you.
  6. Never charge above 25% of the limit at any time. If you do, pay it off or at least down to 25% ASAP!
  7. Carrying a balance month to month doesn’t improve your score – you can pay the cards off in full every month and avoid interest.

It is very IMPORTANT to make sure you have Credit Cards to BUILD your credit. If you’ve had problems with credit cards in the past and find it hard to get one now, we can recommend a few companies that help credit challenged people, even those who have filed bankruptcy.

Choose from the secured and unsecured credit cards offers by clicking below:

Learn More

Best Credit Cards for Individuals with Bad to Fair Credit

  • Here at A.C.E. we have researched the best credit card offers currently available to determine which cards provide you the greatest chance of obtaining credit based on your current credit rating. Keep in mind – the credit card companies are not just looking for high credit scores; although having high scores can help, its not the final determining factor when issuing a revolving line of credit. If you have not spoken to a representative yet, we strongly urge you to talk to us first before applying for a credit card so that we can help try to maximize your chances of being approved for a card that fits your needs.

In addition, here are a few things to keep in mind:

  • Credit Cards 101:

    • If you don’t fully understand how and why credit cards impact your credit you need to spend a few minutes learning how credit card use affects your credit score.
    • Simply getting a credit card will not help you build, re-build, or re-establish your credit history. Making on-time minimum payments with all of your creditors and keeping account balances low relative (25%) to the credit limit are key to rebuilding your credit history.
    • Prepaid debit cards, unlike credit cards, do not provide a line of credit and do not influence your credit history so we recommend that you avoid these cards as they have no impact on rebuilding your credit history.
  • Credit Cards and Account History:

    • As part of our program, we recommend to clients that they should maintain no more than 3-5 credit cards. Should you need to open more than one credit card to reach this goal, you should apply for all of the cards at once because a portion of your credit score is determined based on the average age of all of your accounts. If you were to open one credit card today and another 6 months from now, you will lower the average age of your accounts which in turn hurts your credit scores.
    • If you have more than five credit cards – DO NOT CLOSE THEM ALL AT ONCE – closing credit cards could possibly lower your credit scores.
    • Ensure you are using each one of these credit cards at least once a month. Zero balance for several months will actually hurt your credit scores.
  • Joint Ownership

    • We recommend to ALL clients to establish credit independently your spouse, including a friend or family member.
  • Retail Credit Cards

    • Retail credit cards, or department store credit cards, are store-specific credit cards which are available at (but not limited to) most major clothing, electronics, hardware, and department stores. Keeping these cards active can be tough and you just might end up with more than 5 credit cards so why waste it on a card you can only use at one store?
  • Don’t Procrastinate!

    • The longer you wait to open credit cards means the longer you must wait to build your credit history which means the longer your credit scores will continue to suffer.

If you haven’t already enrolled in our services, join the 1,000’s that have already been helped by clicking here: Request a FREE 15 minute Phone Consultation

Or if you have a quick question, give us a call at (512) 522-5512 or send us an email. Our business hours are Monday to Friday 10AM to 10PM (Saturday & Sunday closed – but we do check messages and return calls if urgent).

Remember – it won’t cost you a penny to talk to us, but it will cost you THOUSANDS if you don’t!

Looking forward to changing your financial future!


AnthonyCreditExpert.com is paid commissions as an affiliate marketer for recommending credit card offers displayed on this webpage. We may, at times, list credit card offers that we are not paid commissions for. This content is not provided or commissioned by the credit card issuer nor commissioned by the company whose products are featured on this site (“Advertiser”). Any opinions, analyses, reviews, or evaluations provided here are those of the author’s alone, and have not been reviewed, approved, or otherwise endorsed by the Advertiser. This site may be compensated through the Advertiser’s affiliate programs. We hope this disclosure will demonstrate our intent to run an honest and reputable business.

Lesson #1: Why Credit Monitoring Is So IMPORTANT!!!

Lesson #2: How Credit Card Use Affects Your Credit Score

Lesson #3: How To Deal With Debt Collectors

Lesson #4: Should Or Shouldn’t I File For Bankruptcy?