Having a credit card may seem like a responsibility. You have to be mindful of how much you can pay and what you can afford, all the while taking special care of your credit score. Taking care of your credit score might seem daunting at first, but it turns out to be beneficial once you start building good credit. You need to be careful about what to buy with a secured credit card to build credit.

Building the best credit free score using a credit card is a tricky business. It involves using your credit card regularly while maintaining your budget. Here are four ways to build your credit score with your credit card:

Get a Secured Credit Card

Building your credit score from scratch requires you to have a new and well-secured credit card. You will use the card generally, like any other credit card. Buy things and make the payment before the date. If you don’t pay back the balance, you will have to pay interest.

When you close your account, you will get the bank deposit. Do not forget that you can only use secured credit cards for a limited period. The purpose of using a secured credit card is only to build sufficient credit, which you can use later for your unsecured credit card and benefit from it for a long time. Choose a secured credit card with a low annual fee. Ensure that your credit card reports to all three credit agencies: TransUnion, Experian, and Equifax.

Get a Credit Builder Loan

A credit-builder loan becomes a forced saving program. The sole purpose is to help you gain credit. The lender holds the payment in an account when you take the loan. You receive your money from the credit builder loan companies after you pay the loan. However, you have to select a secured credit builder loan for this purpose.

Become an Authorized User

Another way of building scores is to get another card’s payment history to your credit files. You can do this by becoming an authorized user, which is possible if your family member or spouse is willing to add you as an authorized user on their card. It is better to become an authorized user of someone’s card who has a good long history of paying on time.

You can benefit from being an authorized user without having to use or possess the credit card. However, you should come to an agreement regarding whether you will use the card, and if yes, then how. You should be prepared to pay your share according to the agreement between you and the credit cardholder.

Before you become an authorized credit card member, ask the primary cardholder whether their card issuers report any activity to the card bureau or not. Make sure your credit-building efforts do not go to waste because of inadequate reporting.

Get Credits for the Bills You Pay

Use renting reporting services that take your bills and include them in your credit report. Not every payment makes it to the credit score, but most of them do. You might be able to get a credit card or loan that makes your position strong with a good credit history in front of the lenders.