Whether you use a secured or unsecured card, one of the best ways to build your credit is by paying on time. In the eyes of creditors, this shows you handle money responsibly. Eventually, if you need to secure a loan, lenders will take your on-time payment history into account.
Diligently paying according to the agreement with the company that issued the card gives lenders more confidence that you would pay their loan on time as well. Even if you only make the minimum payment allowed, never fail to pay when the bill comes due. Although you’ll have a grace period, typically 21 days, don’t wait to make your payment but pay the bill immediately upon receiving it.
To help you make your payments on time each month, you might want to set up an automatic deduction. You can do this with the card company by providing your bank or credit union information. If you have a busy schedule or tend to forget things, this is a real lifesaver.