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How Often Should I Use my Credit Card to Build Credit?

Updated: May 3, 2023


A man holding a credit card and payment terminal.

Using a credit card can be a useful tool for building credit, but many people wonder how often they should use their credit cards to maximize their credit scores. In this blog, we will explore how often you should use your credit card to build credit.


First, it's important to understand how credit scores are calculated. Your credit score is a number that reflects your creditworthiness, and it's calculated based on several factors, including your payment history, credit utilization, length of credit history, and new credit accounts. Credit utilization, or the amount of available credit you're using, is one of the most significant factors affecting your credit score.


To maximize your credit score, you should aim to keep your credit utilization below 30%. This means that if you have a credit limit of $10,000, you should aim to keep your balance below $3,000. If you use your credit card too much, your credit utilization will increase, which can negatively impact your credit score.


With that said, using your credit card regularly is still important for building credit. Using your credit card responsibly and paying off your balance in full each month shows lenders that you can manage your credit responsibly. This can lead to higher credit limits, better interest rates, and more favorable terms when applying for loans and other credit products.

So, how often should you use your credit card to build credit? There's no one-size-fits-all answer to this question, but generally, using your credit card once a month and paying off the balance in full each month is a good rule of thumb. This will show lenders that you're responsible with credit while keeping your credit utilization low.


However, if you're trying to build credit from scratch, you may need to use your credit card more often to establish a credit history. In this case, using your credit card for small purchases and paying off the balance in full each month can be a good strategy.


Using your credit card responsibly is an important part of building credit. Using your credit card once a month and paying off the balance in full each month is a good rule of thumb to maximize your credit score. However, if you're building credit from scratch, you may need to use your credit card more often to establish a credit history. Remember to always use credit responsibly and keep your credit utilization low to maximize your credit score.





Disclosure: For Change Financial only recommends products we would use ourselves. All opinions expressed here are our own. This page may contain affiliate links and we may earn a small commission, at no extra cost to you. Read our full privacy policy on our website.


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