3 Tips for Building a Strong Credit Profile
1st tip for creating a strong credit profile: make note of any and all fees associated with your credit card, and be sure to avoid late fees. Why avoid late fees? There are two important reasons. But first:
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The first reason to avoid a late fee is because it costs money, plain and simple. Secondly, late fees can appear on your credit profile and affect your credit score. Remember, these fees are completely avoidable. One tool to assist you in making on time payments is signing up for automatic monthly payments, where funds are essentially automatically withdrawn out of your bank account on a set date each month and applied to your credit card balance.
A 2nd tip for building a strong credit profile is to pay your balance off in full each month. Having “available” credit that you do not use can slightly increase your FICO score over time, while carrying a card with a maxed out balance can potentially do the opposite.
Finally, a 3rd Tip in creating a solid credit profile is to NOT cancel a paid off credit card once it has been paid off. This relates to having an open line of credit that is available, but you do not rely on. More specifically, keeping two card accounts open, ‘with’ credit available shows you do not rely on credit, rather you use it as a tool.
Student credit cards.com @ January 12, 2012