Which is a method for consumers to improve their credit rating?

Managing money with a credit card effectively is a valid method for consumers to improve their credit rating. When a consumer uses a credit card responsibly, it demonstrates to credit rating agencies that they can handle credit wisely. This includes making payments on time, keeping credit utilization low (ideally below 30% of the available credit limit), and not maxing out the card. These practices contribute positively to a consumer's credit history, which is a significant factor in determining credit scores.

Additionally, regular and timely payments help to build a positive payment history, which is one of the most critical components of a credit score. Over time, effectively managing a credit card can lead to an increase in the credit score, allowing for better borrowing options and potentially lower interest rates in the future.