5 Ways to Use Credit Cards to Improve your Credit Score

1. Pay off the credit card with the highest interest rate first, even if it carries a lower balance than your other cards
2. Close down unnecessary credit accounts, but be sure to keep your oldest card. The more credit history you have, the higher your score.
3. Use less than 30% of your credit card limit. The higher credit lines are to the limit (even if you pay them off in full every month), the harder it is on your score.
4. Settle any accounts in dispute. Even if you disagree with a bill, the amount owing will become much greater once a collection agency gets involved. A $500 dispute can become a very large penalty
5. Banks aren't required to report your credit card use to the credit bureau if they are not used monthly. Use your credit cards, but do so judiciously.

Source: Alberta Mortgage Broker's Association, Jody Robbins Spring 2014