The last thing you'd think of using to improve your credit score would be credit cards; however, if they are used the correct way they can actually benefit your credit report.
Here are three ways to use credit cards to your advantage to improve your credit.
  Always pay your credit cards on time.
Your payment history accounts for 35% of your credit score so you want to make sure that you always pay your  cards by the due date.
Don't miss a payment as this will make your credit score drop.
Paying your cards on time shows the credit reporting agencies that you are responsible with credit and will always improve your credit.
Use only half of the credit limit on your credit card.
Your debt-to-credit limit ratio, which is the amount of credit you've used on your card in comparison to the amount you've still got available to use from your credit limit, also impacts your credit in a major way.
The credit agencies like to see that you still have available credit left to use on your cards so if you don't max out your cards and only use half of your credit limit that also will improve your credit score.
Use revolving credit in addition to installment credit.
The type of credit you have accounts for10% of your credit score.
If you only have installment accounts which are loans that you make regular payments on you're doing yourself a disservice.
You can improve your credit score by also having revolving credit, and credit cards fall under this category.
You want to have a good mix of both types of credit.
You don't want to have too many credit cards; one or two, in addition to a couple of loans should give you a good credit mix.