Depending on the use we make of it, the credit card can prove to be our best ally or a real trap. It happens indeed that a person who has not managed to resist the temptations of consumption must redo his credit tainted by his numerous expenses. Restoring your credit with a credit card can seem complex, so here are our 5 tips for doing so.
Have a new good use of the credit card
To restore your credit using a credit card, nothing like starting by finding a good use of this financial tool which must be used as much to build a good credit record as to make purchases. The credit card is indeed a way to make purchases on the internet, to book a hotel room or even to pay for a plane ticket, but each payment must in any case be thought of with its reimbursement. Your credit card balance and how you spend and refund your purchases are all things that follow you and represent your credit rating.
Organize the reimbursement of your purchases
Whether using a payment schedule established thanks to a good organization or by paying off all your debts directly on your credit cards, to remake your credit, you must obviously pay the full amount. your debts. These represent more or less 30% of your credit rating and the more you are in debt, the worse your score. For the repayment of your debts, do not hesitate to read our other articles on the most effective and fastest solutions. The personal loan can in particular be a solution in order to allow you to have only one creditor and to avoid the high interest rates of your credit cards to pay off your debts more quickly.
No longer getting caught up in compulsive shopping
In order to be able to top up your credit while still having your credit card, you need to stop any form of unreflected compulsive buying that taints your file. To help you control yourself when buying fever hits you, be strategic and force yourself to ask the right questions based on your situation. You can for example wonder if you would have made this purchase if you only had your debit card on you by simply taking into account the actual balance of your account. It is sometimes by asking yourself the right questions that you can reason.
Avoid interest by repaying when due
To redo your credit with a credit card, you must get into the good habit of paying off your purchases before or on the date of each due date. For each credit card, there is indeed a cut-off date where each sum borrowed must be fully repaid, otherwise interest will be added to the amount due. If you manage to repay all of the sums borrowed at each due date, you will quickly increase your credit rating and thus build a brand new credit file. The credit rating which is a rating is in fact mainly evaluated according to your repayment habits.
Don’t destroy your credit cards
Many people with bad credit make the mistake of destroying their credit card to avoid using it again when it really does not help them to rebuild their credit. Indeed, in order to be able to renew your credit, you must keep your credit card as long as possible and use it wisely since your credit history counts for approximately 15% of the evaluation of your total credit rating.