ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Low credit utilization ratio: Having more than one credit card can boost your credit score by helping to lower your credit utilization ratio. Your credit utilization ratio is the amount of credit you’re using compared to the amount of credit available. Most lenders prefer to see it at 30 percent or lower.

Detailed explanation-2: -Try to make your payments on time and pay at least the minimum if you can. Paying credit card or loan payments on time, every time, is the most important thing you can do to help build your score. If you are able to pay more than the minimum, that is also helpful for your score.

Detailed explanation-3: -There’s no such thing as a bad number of credit cards to have, but having more cards than you can successfully manage may do more harm than good. On the positive side, having different cards can prevent you from overspending on a single card-and help you save money, earn rewards, and lower your credit utilization.

Detailed explanation-4: -Use only the credit you need. One way to use a credit card to help build or rebuild credit: Use only the credit you need. Pay off the balance in full each month. Monitor your transaction history. Monitor your credit.