Developing good credit habits can be an important part of a safe financial future – so how do you do that?

Consider the following five ways to get the most out of your credit card to improve your credit score.

1. Fully pay your credit card bills on time

Automatic transfer to your friends! Spend on your budget so you can pay off your full balance at the end of each month. Some people used to say that the minimum payment amount and the balance on the card can improve your credit score, however it turns out that that must be more like a city legend: the balance will only generate interest, for new cardholders, Interest may be higher, and finally you pay the balance plus the interest on the balance. If you do not pay the minimum amount, you may be charged a late fee.

2. Use your credit card carefully

Although you may want to buy a full size refrigerator for your dorm, it is best to start small. Try to use less credit cards and use less luxury. You might even want to buy some smaller, regularly purchased items—such as music and TV streaming services—and automate them every month. This will keep your credit card active and will also make your spending within your capabilities.

3. Monitor your debt credit ratio

The debt-to-credit ratio, also known as credit utilization, refers to the total amount of credit you use each month. For example, if you have a credit card with a limit of $2,000 and you have already spent $1,000, then your debt credit ratio is 50%.

4. Only apply for the letter of credit you need

When you first start building your credit score, you may think that opening a bunch of accounts will increase your credit score more and more quickly. In fact, this will have the opposite effect. First, you need to know the difference between soft and hard queries. A soft query is when a business checks your credit report to pre-screen you.

5. Committed to long term

Think about balancing quality and quantity; one or two good credit cards that you use often and responsibly may be more helpful than trying to track a few cards, such as four or more. A longer personal credit history suggests that lenders have experience in using credit. This is a good thing because they use this information to determine the likelihood that you will repay the loan. In addition, considering that closing a credit card may damage your credit score by increasing your debt-to-credit ratio, this is another reason for finding the right credit card and sticking to it.