Q&A: my first credit card tips?
Question by Sick MOFO: my first credit card tips?
What’s the best way to raise the so called “credit score”? Paying the minumum every month vs paying the balance off immediately? Does the amount you charge matter? And any other tips you may have. Thank you.
Best answer:
Answer by Jenyfer C
Keep a low balance that you make payments on, every month on time. Your credit score looks at timely payments, but also debt to credit ratio. Try to stay well below the limit. Most credit card companies review accounts once a year and may increase your limit.
Know better? Leave your own answer in the comments!
while u won’t raise your credit rating ,i still reccomend paying off the balance,u dont want to pay over 10%interest-do u-?,and not have any go to the princaple.keep using and paying it off and the card compants will keep increasing your limit over time.your rating will increase when you go for bigger ticket purchases like a car ,home,where you can get better interest rates
If you want to buy,lets say a phone.It cost 59.99 and you have the cash. Use your credit card and buy it. when the bill comes pay i t off with your cash. do this a few times and the credit card co will increase your card limit and that will increase your credit score. WARNING…don’t buy something you can’t aford to pay for. Credit cards will kill you with high interest rates.Credit card depts are one of the leading reasons for bad/poor credit .
Keep a small balance and then be prompt in payments. If the card has a zero balance, it actually lowers your score.
If you thoroughly examine all 4 hyperlinks, you will be credit-savvy.
Good luck.
Pay off the balance each month. To ensure that you have the money to do this, write each charge down and deduct it from your checking account balance.
just make sure you pay it off in full every month and if you charge too much that you can’t pay it off then keep your amount owed to balance ratio under 50%.
the amount you charge doesn’t matter. I can charge 500 dollars every month and pay it on time and YOU can charge 50 dollars on it and pay it on time and we both will have the same rating…the only thing it does is it’ll get me MORE CC offers that can only lead to putting me in debt faster than you. So no it doesn’t matter what amount just as long as you pay it off in time.
Pay the minimum every month! Just do not go overboard! If you go overboard, and send a less payment, that goes against you.
Pay off the balance each month….I do and my credit score is 812 (Transunion).
Best wishes,
pup
your credit score will not be affected whether you pay in full or pay the minimum payment. it’s up to you. if you want to save money pay in full, so you don’t pay any interest. pay on time and don’t use over 50% of your credit line. whatever you do, don’t close the account, you need to build established credit.
The key is control. Treat the card as if it were cash out of your pocket. You don’t need to pay it off each month. In fact that will hurt you. I use this rule. I pay off half of the balance each month. If the balance is $ 50.00, I pay $ 25.00 If the balance is $ 400.00, I pay $ 200.00. Every 6 months, I pay it off and start over. My score has jumped from the low 500s to upper 600s in about 18 months.