Personal Finance

The Best Things to Charge on Credit When You're Rebuilding Your Score

You've decided to rebuild your credit by charging small things to your credit card. As long as you pay off the balance on time every month, this is a guaranteed way to make your credit score rise gradually to your desired credit range. This article will go over several tips on what items to charge to your card to make your score improve.

Gas

If you have a budget, chances are you already factor gas into your monthly budget. You should charge some of your gas expense to your card and pay it off at the end of the month with the money you leave in your bank account. A few credit cards even offer cash back on gas purchases so you can get a few cents each gas purchase back. However, you should keep in mind opening a new unsecured card might not be the best step at this point in your credit rebuilding career. It is up to you to decide if this option will work for you.

Streaming Services

Streaming programs like Netflix or Hulu cost around $20.00 a month, and you can set them to autopay on your credit card. You just pay off the balance at the end of every month, and this is an inexpensive, easy way to bump your credit score up a few points relatively quickly.

Balance Transfers

If you have another credit card with a high interest rate and a high balance, this can damage your credit score. One option to fix this issue is to transfer the balance from the high interest credit card to a low interest credit card. There are also credit card with zero annual interest rates, and if you can transfer your balance onto one of those, you can pay the balance without worrying about more interest stacking up. Credit Karma has a list of zero percent interest rate cards.

Groceries

If you have a budget, you've most likely factored groceries in. Put the money for your groceries into your bank account and charge the groceries to your card. At the end of the month, pay off the card balance with your grocery money. This practice will ensure you pay the credit card bill on time and will bump your credit score up a few points while you shop.

Small, Everyday Purchases

If you allow a certain amount of money everyday expenses, put that money in your checking account and charge it to your card. Make sure you keep track of every expense you charge to your card, so you know exactly how much you'll need at the end of the month to pay your card off. The most important thing to remember is you have to pay your card off every month, on time to make your score rise.

Rebuilding your credit score can seem like a daunting task, but as long as you're responsible with your spending and pay off your card in full every month, you shouldn't have a problem raising your credit score. As soon as your score hits a certain point, you'll have an easier time applying for a loan or opening a line of credit to purchase the items you want.