A secured credit card can be easily availed against your fixed deposit, and it’s one of the best tools to increase your credit score if used smartly. Following are some of the good credit card habits that can help you get magnificent credit score. 

  • Keep a low credit utilisation ratio: This is the thumb rule that every credit card user must follow. Higher the credit utilisation ratio, lower will be your credit score. When you max out your credit limit often, the lenders assume you are credit hungry. This can have an impact on your score. Always try to maintain 30% credit utilisation ratio on your secured credit card. 
  • Use your credit card only when necessary: Lured by a wide range of offers, some people tend to overuse the credit card. This could result in overspending your credit card limit. Moreover, if you are unable to pay the entire credit card bill amount, it can accumulate additional interest charges as well. 
  • Make payments on-time: Never miss a payment even for a single day. Late payment and defaults can have a negative impact on your credit score. Be consistent and regular on your credit card bill payment. 
  • Check your credit score regularly: Keep a track on your credit score and check it frequently. It would help you analyse what caused your credit score to drop. You can take immediate action to fix it. 
  • Don’t apply for multiple credit cards simultaneously: Your secured credit card will come with a restricted credit limit. Based on your spends and in order to keep your credit utilization low, you might want to increase your credit limit. So, you may tend to apply for more credit cards. Every application invites a hard enquiry which can impact your credit score

Looking for a credit card that matches your credit needs, you can check your free eligibility here. Don’t worry! It doesn’t count as a hard enquiry and won’t reduce your credit score.