Using the 20 Percent Principle to Add More Points to Your Credit Score

What you will learn in this article is a simple method you can apply to increase your current score. You've got 650 on your report. So what? Even people with 720 still find it useful and know the benefits of putting extra points to get them to 790.

Using the 20 percent rule, what you will be doing is to keep the expenses on your credit cards to a possible minimum. Note the words I used there "possible minimum". The reason is because hundreds of people are using that principle and it sure works for them.

Delta Credit Card

Even though a creditor gives you a maximum spending limit of (for the purpose of understanding this article) , 000, that doesn't mean that you should spend , 000 or , 000. Oh, you're going to pay back? Well, that is understandable but also keep in mind that the closer you are to this limit, the more points are take away from you.

The kind of credit-card lifestyle you should be living should built on the 20 percent principle whereby you do not spend more than 20 percent of the total limit allowed you on your plastic-money-holder.

The more you keep your expenses to a 20 percent minimum, the better for you as it will be counted for you as financial righteousness.

Another strategy to build more figures on your file is to sign-up as an additional cardholder on a close relative, spouse or associate's card. Before you use this method, however, first establish that the person whom you will be jumping on his boat has got a pretty good financial record too, or else you will be putting yourself in more danger if such person has got a bad spending habit on his card.

Using the 20 Percent Principle to Add More Points to Your Credit Score