Whether you use a regular credit card or credit cards for no credit, if you do not have a good credit score, it is going to affect the quality of your life significantly. You do not just have a single credit score. You must have heard about FICO and VantageScore as well. Currently FICO is the most commonly used credit score across the US. This is followed by VantageScore which is second in popularity. You will find multiple scoring models under each of these brands. FICO also offers industry specific scores and different scoring models.
Abiding By All The Different Credit Bureaus
Whether you use a regular credit card or a low rate credit card, you will have to abide by any of the three different credit bureaus functioning in the country. They all have different types of credit scores and credit models. There are numerous credit scoring models that currently use a range of 300 to 850 points. If you are looking for a good credit score, it should be above 670. This is however quite subjective.
It is always advised to keep a regular watch on your credit scores but do not obsess over it. If you are regularly keeping a watch on all your credit scores by each of the bureaus, you need to understand that credit scoring models are proprietary by nature. You may not always know why exactly you have a low score in one model and higher in another. Instead of obsessing over your credit score and how it is being calculated by different financial institutions and authoritative organizations, mend your spending habits.
You should focus on the fundamentals of building a good credit history. The best way is to practice idealistic spending habits when using your credit cards for no credit. Following are a few examples:
- Pay up all your bills on time
- Keep your card utilization low
- Leave your accounts open for a long time because closing an account is not a good thing
- Always have a good mix of credit accounts
- Do not let others pull out your credit reports too frequently
This should help you get better credit scores regardless of the credit card you are using.
