Using Your Credit Card to Build a Good Credit Score

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Someone handing over a credit card.

Having a good credit score is important, especially when applying for a home loan. Those with good credit are not only more likely to receive loans but will also have lower interest rates. So how exactly does one build up one’s credit score?

Money expert Clark Howard recommends several steps for using your credit cards effectively. For one, he suggests having more than one card to have a mix of credit, which will boost your credit score.

“If we hit a recession and credit card companies decide they don’t want you and one of them dumps you,” he explains, “you still have the other card. And if one of them cuts back your limit, you still have the other card.”

It’s also crucial to avoid canceling any credit card accounts with high credit limit, as this can hurt your credit score. And of course, you should always pay off your credit card bills monthly and keep your balances low.

Check out Clark Howard’s full list of credit card rules at and learn how you can effectively increase your credit score.

You can also check out our own Mortgage Information page and Mortgage Calculator here.

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