How do credit cards affect credit score?

Credit cards affect your credit score based on how responsibly you manage them. Key factors include:

• Payment History: Making full, timely repayments is the most critical factor for a high score.
• Credit Utilization Ratio: Using less than 30 percent of your total credit limit demonstrates financial discipline.
• Credit History Age: Maintaining older card accounts helps build a longer, stable credit profile.
• Hard Inquiries: Applying for several cards in a short period triggers multiple inquiries, which can temporarily reduce your score.