Credit card balances are the leading cause of debt for most people, and this means that dealing with credit card debt is absolutely critical for a solid financial foundation. If you currently have issues with credit card debt, you should take immediate action towards a healthier financial situation.

Store Cards Aren’t Credit Cards

Not all credit cards are judged on the same level in a FICO score. Store cards and department cards are not beneficial and you should never carry a balance on them. They will hurt your credit far more than standard credit cards and they always have a very high interest rate. It is never in your best interest to hold a balance on a store card, though they can help your credit rating a little if they are kept open with no balance.

Keep it Simple

American Express and Discover usually shouldn’t be part of a credit repair strategy. They are more complex than MasterCard and Visa and they are harder to acquire. If you do have these cards, you can keep them, but they usually shouldn’t be focused on when first trying to build credit. They also aren’t accepted everywhere.

Increasing Your Credit Score

It’s fairly simple to manage your credit cards in a way that increases your credit score. Pay off your balances every month and increase your credit limits as much as you can. Always keep your balances under 20 percent and never close your oldest credit accounts. Maintain few credit accounts, but make sure they are older accounts and that they are always paid on time. As long as you do these things, your credit score will increase.