How a Gas Card Can Help You Build Credit

One of the fastest methods to build your credit is with the use of a gas card. There are many different techniques available to help you build credit, some of them are easier than others. A gas card is a simple and easy way to build your credit quickly

Report to Credit Bureaus

Gas cards will report your activity to the credit bureaus. When you are trying to build credit, anyone that reports to the credit bureaus, is a credit building opportunity. When you pay your payments on time and use the card consistently, the creditors are offered a chance to show you are responsible and worthy of credit. Your credit score will increase slowly over time.

Baby Steps

Getting a gas card is like taking baby steps. When you want a large amount of credit, you have to start out small and work your way up. If you want to obtain a mortgage someday, this could be the first step. When you have no credit history, you are not an attractive borrower. A gas credit card will help you get the ball rolling. Then you can move on to bigger and better things.

Regular Payments

The biggest way that you can help yourself build a good credit score is to make your payments on time. The best way to avoid any problems is to make your payment as soon as you get your statement. If you cannot do that, try to pay it a week before the due date. This will give the payment plenty of time to hit your account. You do not want to have to worry about any technical problems affecting your credit score. Even if you can only make the minimum payment, make sure that you do it on time.

Keep Balances Low

Many people who have their first gas card are tempted to leave high balances on the card. This is one of the biggest mistakes you could make. Keeping your card maxed out will make your creditors believe that you cannot afford to live within your income means.

They think you are in over your head and will lower your credit score because of it. Keep your balances as low as possible every month. If you can, pay off the balance every month. This will help you stay on top of your balance and not allow it to get out of control. Try to keep your gas card balance below 30% of your total card limit.

Rebates

Many gas cards will give you a percentage off of every purchase. Some of them are as high as 5% on each gas purchase. This can help you out immensely as it lowers your balance by 5% each month. You will either receive it in cash or in the form of a credit on your account each month. Use programs like this to your advantage.


Improve Your Credit Score - Free Consultation