3 . Never close credit cards with a balance . This is worse than merely closing an existing credit card account . “ When you do this , your available credit or credit limit on that account becomes zero , which appears that you have used the maximum limit on that card ,” Ross says .
3 ways to enhance your credit
1 . Get a co-signatory . According to Ross , young adults , in particular , will benefit from this approach . A parent or guardian can serve as co-signatory on a credit card account . “ You and your co-signatories share the same responsibility on the loan ,” Ross says . “ Hence , the loan is also reflected on your co-signatory ’ s credit reports , affecting your credit positively or negatively depending on how it is used .”
2 . Open a secured credit card . This is especially beneficial to those who have little or no credit , Ross says . “ To choose a secured credit card , go for a dependable bank and do not fail to read the entire fine print ,” Ross says . “ Some credit card issuers charge significantly high interest rates and exorbitant fees , hoping to victimize people with little or no credit .” Likewise , see to it that the card you choose submits reports to all three credit bureaus to establish your good credit reputation .
3 . A gas credit card can be a great help . A gas credit card can show creditors that you can be trusted to regularly pay your debts promptly , Repak says . “ After each billing cycle , you need to pay off the balance completely ; and remember that keeping a running balance is not necessary to build your credit ,” he says . One good motivation for paying a balance fully is that the yearly percentage rate on gas credit cards often is likely to be high .