How To Use A Credit Card To Build A Credit In 2022

Before you read this article, you need to understand some basic principles e.g finance, profit, and loss. Below is what to expect In this article.

The Important of having a credit card can be of a huge advantage to you as it covers all your expenses and also learns how to build credit. Knowing how credit cards work and how to build credit can be Insightful.

Credit Cards offer you more than a debit card. With a credit card, you can build credit. It can be a good resource to its users especially by acquiring wealth. Credit Card can be used to make purchases, cash transfers,s or create cash advances by paying back the money In the future.

What Is a Credit Card?

A Credit Card is a payment card Issued after purchasing a good. It enables users to pay for goods and services In order to accrue debt.

Based on the demand for a credit card. The standard size is 1D –1, also referred to as CR80. The standard credit card dimensions are Width of 3.37 Inches (85.6 mm) height of 2.125 ( 53.98mm).

Credit cards can help you build on credit, make easy payments and enjoy your everyday activities.

Credit cards do have an annual fee or start-up fee attached to It. Depending on the card Issued to you, credit cards have associated fees attached to them. 

Activities Involved In owning a credit Card are cash advance fees, balance transfer fees, and foreign transaction fees.

Read: What Is A Virtual Debit Or Credit Card

Type of credit card

Rewards Credit Cards 

Based On your percentage of spending, you can get bonus points In your day-to-day activities like groceries, gas refill, etc.

Also, you tend to build on bonuses/ points to gather up your basic purchases In the way of earning cashback.

Read: 10 Best High Limit Credit Cards

Travel Credit Cards

you love traveling, don’t you? Well, Travel credit cards offer you chances to earn while you travel. Any part of the world that you travel to, you earn specific points or bonuses.

Balance Transfer Credit Cards

You may have high-Interest credit card debt and also considering a balance transfer credit card to help manage the debt.

Balance transfer credit cards have a secure percentage for a period of a few months which can equally give you bonuses in form of points.

Others are ;

  • Zero percent APR credit cards and low Interest credit cards
  • Business Credit Cards
  • Student Credit Cards 
  • secured credit cards 
  • Store Credit Cards
  • Co-branded credit cards

How to build a credit using a credit card In 2022

You could be an expert In build credit with a credit card or Just a novice, but what matter most Is the way you use them. Here are the steps you can follow.

  • 1. Become an authorized user
  • 2. Try a secured credit card
  • 3. Apply for a credit card with good rewards
  • 4. Check your credit limit 
  • 5. Know your payment due date 
  • 6. Use the card to make purchases
  • 7. Set up auto pay 

 Authorized User

You don’t have to own a credit card In order to have a good credit score. You can become an authorized user on someone else’s card by having full access to theirs. An authorized user Is an extension of the primary card holder.

Read: Visa Credit Cards Review 2022 | How Does It Work

Own a secured Card 

With a secured credit card, You can make a cash deposit to a bank to establish a line of credit and use the card to purchase up to that limit. After becoming an authorized user, you can apply for your own credit card.

Owning a credit card nowadays comes with huge benefits and rewards. In creating your own credit card, Be sure you know your bank application rules and restrictions. 

Becoming an authorized user, Applying for a credit card, The next step Is for the bank to approve you for a credit card. Having a credit card can be limited based on your Income and other factors. The amount you spend each month becomes your credit Utilization rate.

Payment Due Date

Before you start using your card for that month, check your monthly payment due. To create a better understanding on your credit card usage check for dates.

Use The Card To Make Purchases

Earning points on your demands can go a long way to have a good credit score. You earn cash by making purchases. If you don’t make purchases of your account, your account activity will definitely be low and also, your credit score could drop.

Read: Best Credit card Reviews of 2022

Auto Pay 

You can forget to make your monthly payment so the easiest way Is to connect your credit card account with a account that can automatically pay your bill at a set date by you.

How to Use a credit card to build credit In 2021.

1. Use your credit card 

2. Track Your Spending 

3. Have a low credit Utilization ratio 

4. Pay bills on time 

Use Your Credit Card

An Ideal credit card usage can come In any form. It is highly recommended you use your credit card once every three months.

Also, you can create your credit score by 150 points by.

1. Own more credit Accounts 

2. Pay down high credit card balance

3. Make on time payments

4. Keep the accounts you own 

5. Dispute Incorrect Items on your credit report.

 Having a high credit score or building one from scratch can take up to a month or six months depending on the type of credit score you are looking at. Your credit card build up depends majorly on you and your type of credit score.

Track Your Spending

Imagine you having millions of naira In your account and all you can think of Is to spend it all at once. This type of attitude can lead to a decrease In your credit score and also have a huge disadvantage In your finances. Be mindful.

Read: 11 Best Unsecured Credit Cards For Bad Credit

Pay Your BIll On Time 

To build credit with your credit card, make sure you make a minimum payment on time every three months so as to acquire Interest. Perhaps, you miss your bills due date, you can be charged with a fee and could lose your promotional Interest rates. Making a late payment, your credit card company can report your account once It has pass the due time and that can have a negative score on your account.

Low Utilization rate

Limiting your credit card use, can help you maintain a low Utilization rate. You can maintain a low Utilization rate by paying down your card’s balance before your statement period end.

Credit score can be achieved by using the balance and credit limit as they appear on your credit report.


Which Is more valued. Credit Cards or Debit Cards? 

Well, Credit Cards of course.

Can I build a Credit Card easily?

 yes. It takes months.

Does Credit Cards allow one to build up credits?

 You can build up credits and have a good credit score. 

Is there an attached fee for credit cards?

Yes. Credit Cards do have an annual fee both for startups and experts.

How to use a credit card to build credit In 2021? 

1. Track Your Credit Card
2. Track Your Spending
3. Have a low credit utilization ratio
4. Pay bills on time.

 Does It account?

Yes, having a credit card can be of help to someone. It can create finances for that fellow. It can also be of leverage for someone. Credit Cards are recognized everywhere In the world. Building a good credit score can be Intimidating, but It can be overcome over time and you be disciplined.
Credit Cards can also be used to improve your credit score. The regular use of credit cards responsibly allows you to build credit because it shows lenders that you can build wealth.



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