Credit Cards and Credit Ratings

Credit ratings or credit score are the records of a person's spending pattern regarding credit cards and the repayment modes. Financial institutions, especially the credit card companies and the moneylenders, keep track of the credit statements of clients, their payment records and any delay/inability of repayment and the interests being paid due to late repayment of the credit.
Using your credit card once a year or foregoing subsequent repayment and settling the balance at the end of the year might not stand you in good light in terms of credit ratings, as your credit report takes into account last three years' payment history. Any discrepancies on the part of credit card Company in issuing your statement or bill it should be brought to their notice immediately, since it may result in delay of payment or bad credit. Credit card could be used for monthly payments of bills, which would take care of the regularity of use, and smaller transactions can help in maintaining the required credit rating. Also regular and small transactions may help you increase your credit limit, which in turn accounts for a higher credit rating in the credit report.