Building credit...What is the best way to pay for credit card purchases ??

Question

1) Should I make small purchases lets say 100$ a month and
pay it off in full upon billing ?
2) pay full balance before i recieve my bill ?
3) make the minimum payment only ?

Answer 1

I'd divide your small purchase into 3 payments. You need to establish a payment history. Paying off your balance in full may not help as much. You need to let your creditors see that you can handle monthly payments. You should try not to spend any more than 35% of your available credit. Your credit score is based on your payment history, your used credit to available credit ratio, the type of credit you have, the age of your credit and the number of inquiries on your credit. Hope this helps!

Answer 2

Option #1 is definitely the best.

There is no benefit to paying the balance before receiving the bill.

Making the minimum payment only is the sure way to the unending debt cycle.

Using the card as a convenience rather than a way to make ends meet is the responsible way. If you use your card for regular purchases such as groceries and don't overspend you can pay all of your bills in one shot at the end of the month, plus as an added bonus at the end of the year many cards will give you an itemized activity statement that will show you exactly what type of things you spent your money on. Some cards won't even charge you interest on your monthly purchases if you aren't carrying a balance.

The exception to the pay it all each month rule is when you need a big ticket item such as a new sofa. Just be sure that you are able to pay a reasonable chunk for the next couple of months to get you back to the point where you aren't carrying a balance (and paying large interest fees).

Answer 3

Never just make a minimum payment if you can help it. Always try to pay in full.

You don't have to have action on the cards every month either. If you are just trying to build a credit history and really don't want to make purchases, buy a tank of gas or a pair of jeans.

Then stick the card in a drawer for 4 or 6 months and then pull it out and do the same thing.

You can either send in your payment when you notice it cut on the cards online website or pay when you receive the bill.


edited to add: the only cards that you should stretch it out with payments, is the cards that you have a 0% interest rate on. And then only stretch it out for several months.

Answer 4

You'd do well to pay off the bill in full when you get it. The credit card companies are looking for responsibility, not your money. In other words, can you handle the responsibility of 'charging' credit or does it run away from you? building up each month with little to pay it off?

However, don't be afraid to pay some interest. If you are young, and can pay consistently, even paying some interest charges, that's ok. As you get older, and your credit is established, you can pay it off in full to eliminate the interest charges.

Good luck.

Answer 5

I wonder if "haunting skull's " answer was understood by anybody.
Pay your bill off in full as it comes due. minimum monthly payments are a trap and hard to get out of. If you need more money than you can reasonably expect to pay back in 30 days---use a bank and be realistic in your decisions. Good bank credit is very much a plus.

Answer 6

get the staggering, vivid one. they're all customary, except are not getting one which expenses an annual fee. APR = Annual percentage price. does no longer remember in case you follow the golden rule: PAY THE invoice IN finished each and each month when you've and reviewing the billing statement. {in the different case, the decrease the APR, the better.} Use the cardboard for everyday purchases, and make your price on time each and each month, and by the years your FICO credit status will bypass up. you need to choose to commence with a secured card. sure. search for suggestion from with someone head to head. that is sturdy to have a relationship with a banker.

Answer 7

pay the full balance off each month is the best way to build a good credit history.

Answer 8

just keep your card active and do not have a balnce over 30% of your limit. Example 1000 dollar limit should not exceed 300 dollar balance. As long as you do that and make your payments on time you are good.

Answer 9

To build credit, only put on your credit card what you can afford to pay off right away.

Answer 10

Spend ONLY what you can afford that month, and pay it off in full when you get the bill. Don't ever spend more than you can pay off that month.