Two Ways to Use Credit Cards to Increase Your Credit Scores

Credit cards can increase your credit scores if used properly. Most of the articles you will read will refer to them as the culprit of bad credit scores because of the debt problems they create. However in this article I will show you positive ways to increase your Fico scores using credit cards.

1.First way to increase your Fico score using credit cards is by becoming an authorize user. This is a legal way to add someone else's good paying history to your credit report. It works like this: Imagine that you were house sitting for a neighbor or family member while they went out of town for a month. This neighbor wanted you to keep their visa card for household expenses or even bill paying purposes while they are away. But because your name is not on their Visa you cannot legally use it. So your neighbor calls his card provider and asks that you be added to his account as an authorize user. Visa will ask for your social security number and within 30 days a new Visa is issued and mailed to your neighbor's home with both your name and your neighbors name listed on the Visa. This allows you to legally use his card and to sign your own name. But this also makes this account a joint account and it will automatically be added to your credit report. The great news is the whole history will be added to your credit report. Even if the neighbor has owned this card for 30 years the whole history will be reporting on your credit report. This creates a positive and seasoned good tradeline added to your credit report that can increase your Fico scores dramatically.

2. The second way to increase your credit scores using credit cards is to use a secured account.

A secured card is a card that is secured by cash that you deposit into your credit account. This usually can help establish credit for people that cannot get a credit card otherwise. However, a secured card can become a huge advantage if you keep the balances below 60% of the available limit and you pay your payment every month. The secured account later can become transferred into an unsecured card once you have established a good pay history with the company. Also other companies will become available for you to further increase your credit worthiness. But remember to always pay your bills on time and never allow your balances to get near the credit limit because this signals to the Fico scoring program that you are in financial trouble.

These are two sure fire ways to increase your credit scores using credit cards thatfew people know about.
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