Those who know how to use their credit cards wisely are few and far between. Or perhaps it’s more accurate to say that most of us have had to learn the hard way that buying on credit can be a very dangerous proposition. If we’re lucky, we learned our lesson after racking up massive credit card debt and then having to pay it off. But some people carry debt for years, spending more on credit as soon as they pay a portion of it off, perpetuating their debt and damaging their credit score in the process. In short, they never learn. What many fail to realize is just how much of an impact credit cards can have on a person’s credit score. But when you understand the relationship between the two, you can find ways to use credit cards to raise and maintain a top tier credit score.
The journey to a good credit score begins with building credit. And this begins with taking on debt. Where people start to get into trouble is by thinking that credit is the same as cash. They trick themselves into thinking that the money on a card is money in the bank. Instead, think of every credit card swipe as a mini-loan. One of the best ways to get a handle on this situation is to take out a secured credit card.