Build Your Credit So You Can Use It to Reach Your Goals

Learn about the five parts that make up your credit score and how your habits can affect them.

This is the weekly routine I personally use to manage my credit cards. The goal is to build good habits and keep balances low—not spend more money.

The steps

• If you need new cards, start with one or up to two. One is perfectly fine. Stop applying once you have two approvals.
• Our program guideline is no more than four new cards per year. This is a ceiling, not a goal—fewer may be better for your situation.
• Use one or two cards for planned bills and purchases you can already afford. Stay well below your credit limits.
• Every Sunday, review your spending and pay your current balance in full when possible.
• Always pay at least the minimum by the actual due date. Never wait until Sunday if your payment is due sooner.
• Pay your statement balance in full by its due date to avoid purchase interest when your card’s grace period applies.
• This routine is for building credit, not borrowing money you don’t have.
• After about four months, ask your card company when you may qualify for a credit limit increase. Ask whether the request requires a hard credit inquiry.
• A higher limit may help lower your credit utilization if your spending stays the same. Approval and score improvements are not guaranteed.
• You can use this routine with cards you already have. You don’t need another new card to repeat it.

Sunday is your check-in day. Your payment due date and the balance reported to the credit bureaus still matter.