So, whether you are a new-to-credit borrower or an already existing Credit Card user, building and maintaining your credit is crucial for various purposes, even when you apply for a Credit Card.
So, let us discuss in this blog how you can use your Instant Approval Credit Cards to build or rebuild your credit score.
What are Instant Approval Credit Cards?
As the name suggests, these cards give you instant benefits with a digital and quick Credit Card application process, fast approval and quick activation of your Credit Card. Instant cards have recently grown in popularity because of their quick processing, which makes them a great utility for fulfilling financial needs.
The eligibility criteria for such cards are easy to pass, such as having a regular source of income. Although meeting eligibility criteria does not guarantee Credit Card approval, they however, increase the chances of owning an Instant Approval Credit Cards.
How does using an Instant Approval Credit Card help your credit?
● Paying bills on time
Use your Credit Card to pay recurring bills, such as electricity, internet, or other utility bills, on time. This helps you build your credit score. Along with these bills, clear your Credit Card dues on time. It also boosts your credit score.
● Apply for small EMIs
If you are a new-to-credit borrower or looking for ways to rebuild your credit score, get an Instant Credit Card online and purchase necessary items at affordable prices through EMIs (preferably no-cost EMIs). Select the duration suitable for repayment and set an auto-debit instruction for the same.
Timely payment of EMIs will help you build or rebuild your credit.
● Do not overuse your Credit Card
While carrying out your expenses using your Credit Card, keep in mind that there is a utilisation limit set for cardholders. This is known as the Credit Utilisation Ratio (CUR), which is calculated by dividing the used credit limit by the total credit limit.
If the ratio is high, it means that you are overly dependent on your Credit Card. Maintaining this ratio implies a well-managed credit allocation, which eventually helps your credit score.
● Keep track of your credit report
Monitor your credit report at regular intervals to ensure that your Credit Card usage activities are not hampering your score. If your credit score still needs to be improved, you can always go back to implementing some simple strategies to get it back on track. Thus, checking your credit report is a crucial step in rebuilding or maintaining your credit score.
Conclusion
Credit Cards have proven to be a financial aid when in need. They help you manage your daily expenses and develop a disciplined spending and repayment plan. However, if you have no credit history or a weak credit score, apply for a Credit Card online and implement these simple strategies. It can help you build or rebuild your credit easily.
