A strong credit score is a great tool for financial success. Here are some helpful pointers to keep in mind as you use your credit card this holiday season and in the future.

Making On-Time Payments

The most impactful way to strengthen your credit score is to make payments on time. It is the largest factor used to determine your credit score. Missing monthly payments or paying them late can hurt your credit.

If you can, paying more than the minimum monthly payment on your credit cards can also help raise your credit score by increasing your available credit while still carrying balances.

Regular Credit Card Use

A good way to build credit is to regularly use your credit cards. This is because issuers like to see you’re using your card, rather than leaving it dormant.

It’s also important to remember that you don’t have to spend a lot on your credit card to build credit. Simply making regular purchases that you were already planning on paying for is a great and responsible way to use your credit card.

Limiting New Credit Applications

While credit cards are a great way to build your overall credit, there is such thing as having too many. This is because the length of your credit history factors into your FICO Score. Having too many new credit accounts can lower the average age of your accounts and damage your credit.

Being mindful of the accounts you already have open when applying for new credit cards will ultimately help your credit.

Keep Your Utilization Low

Finally, it is a good rule of thumb to keep your credit card utilization under 30% of your credit limit. If you get too close to maxing out your credit card, issuers may think you are incapable of paying off your card and therefore lower your score.