Many people make an inappropriate assumptions about how to enhance credit rating and how to improve credit scores. Don't imagine that your assumptions are correct.
Bad Assumption #1: Lower optimum card limits improves the credit score of mine.
Credit scoring programs do not penalize you for having higher credit limits. Nonetheless, they do penalize you for having huge balance relative to the limits of yours. A $2,000 balance on a card with a $2,500 limit greatly minimizes the credit rating of yours. However, if you raise the limit to $10,000 on the same card, a higher credit score results since you appear less "maxied out" on the credit cards of yours. Moving that balance to a higher maximum restrict card may also improve your score.
Bad Assumption #2: Always paying the minimum is going to result in a good credit score.
Naturally not paying the minimum will negatively impact your credit rating. However, paying that minimum won't usually lead to a good score either. The primary key concern is keeping your reported outstanding balance low relative to the optimum credit limit. Keeping your balance at less that ten % of the maximum limit is credit repair free (understanding) great. A balance more than fifty % of the maximum could greatly reduce your credit score.
Poor Assumption #3: Always spending by the due date is going to result in a good credit score.
Clearly paying late will reduce your credit score, but it requires much more than timely payments to get a top credit rating. Why wait to get a paper copy of a bill. Go on line three times a month, review the credit charges of yours, and also make on line payments. Thus you're not late. There's less possibility of effective identity theft since you see the charges earlier, more frequently, so you are able to take corrective action earlier.
But most of all the claimed balance to credit reporting agencies is reduced. What usually gets reported to the credit agencies is the balance on the paper bill. Reducing this balance by paying before the bill is created will improve the debt ratio of yours and your credit score.