Maintaining low credit card balances can improve your credit score, and help you get better interest rates when you borrow money.  You may pay your mortgage, car loan, or student loan on time, but a high credit card balance will hurt your score.  For example, let’s say your credit limit on your credit card is $1,000.  Pick an amount such as $300 to be your “limit,” and only charge up to $300 each billing period and then pay it off.  Over time, the credit bureaus will see you can manage credit which will likely be reflected in your credit score.  I’ve seen where this simple tip has improved a borrower’s credit score by 100 points.