 TITLE: Does Adding a Credit Card Improve Your Credit Score? CONTENT: If you decide to open a new credit card, it's important to be strategic about how you use it. After all, you want the card to help you build credit and develop an excellent financial profile. Here are some ways to do that:\n1.  Make all of your payments on time. Because it's the biggest factor in your FICO® Score, it's important to get your payments in by their due date, every time. If your card issuer offers an autopay option, consider setting it up for at least the minimum monthly payment. Then you don't have to worry about owing a late fee or taking a hit on your credit score because you forgot to pay. You can make additional payments at any time.\n2.  Pay off your balances each month. Carrying a balance month to month means you'll likely be charged interest. Your bill can grow quickly if you continue using the card while interest is accruing, so consider paying your balance if you're able. Doing so helps you avoid paying more than necessary, and it also keeps your credit utilization rate low. That's second only to payment history in terms of how it affects your FICO® Score, so it helps to be mindful of how much you're putting on your card.\n3.  Or, keep your balances low. If you're unable to pay your balances in full every month, you can still aim to keep them low. You might stop using the card, or use it only for small-ticket purchases so it's easier to chip away at your balance. Then, if you're able to pick up some extra shifts at work or receive some cash as a gift, you can use it to pay down the balance and get back to $0 faster.\n4.  Create a credit card budget. The deferred nature of debt can cause you to live outside your means if you don't stick to a plan to pay it off. Debt balances can increase quickly and so can the amount of interest you owe. To keep your payments manageable—and to keep boosting your credit score—avoid charging more than you can afford to pay in cash. That way, you'll be able to afford your payments and you'll build a consistent record of responsible card usage. END