BANGALORE: Building up credit is not as scary as some people think. The preconceived notion may be that you will sink yourself into debt by using your credit card, but if you use it in moderation, you will be able to keep yourself from overspending and build up healthy credit. Along with educating yourself about what helps improve your credit score, you should also be aware of what can have a negative impact. These are a few surprising things you should look out for:

1. Being super cautious about using your credit card

 Many of us think that credit card usage might lead to excessive spending and bad credit habits. The fact remains that without spending and repayment history, the credit bureau is unable to rate your credit standing.

Lack of credit transactions or no transaction will make your credit file inactive on the Bureau; it brings down your credit score. So it's best to make regular small transactions, say grocery purchases, and pay the credit card on time.