questions about credit scores?

Question

when i get a credit card statement for the month, if i make a full payment every time, would it be helpful in increasing my credit score? or is it better to leave some amount?

also, what if i stop using the credit card so i don't owe them anything? is that helpful for increasing credit scores?

finally, is it easier to increase the credit score if the credit line is higher? by the way, i got my first credit card and the credit line is 200 dollars.

Answer 1

It doesn't matter if you pay it off each month or make the monthly minimum. The important thing is: Do not be late! Paying it off each month eliminates the interest. I'm sure with your first card you probably have a pretty high interest rate.

Not using the card doesn't really help. If you don't use it for an extended time, they may cancel it. That won't help.

The credit line doesn't matter that much. Having the card and never being late on a payment is all that really matters.

Answer 2

The best thing for you to do is to use an amount on the card which you can pay off in full each month. Do not use your credit cards to charge more than you can afford. If you just got your first card, then you may have to live with having a small limit for a while. That's okay, it's good practice so you don't get in over your head later on. For now, a small credit limit is probably more beneficial to you than a larger one. If you rack up charges you are unable to pay on your card, then you will accrue finance charges and risk paying late. These behaviors will lower your credit score. If you continue responsible habits, then the credit card company will be offering you an increased limit soon enough.

Answer 3

Congrats on your first card and welcome to the wonderful world of debt!
Question 1) Doesn't matter really-what counts is that your payment arrives within 30 days of the due date. Tics against you begin when a payment is 30+ days over due. FYI - If you pay off something early-say a car, make sure the wording on your credit report states that you paid in full early! Some companies will code an early paid in full account as early termination/item returned. Lame-pull your credit report once a year!
Question 2) If you stop using a card -Close it!. Many people think the more open cards they have the better their credit rating when just the opposite is true. Creditors don't want you having easy access to lots of credit in case you decide to go of the deep end some weekend and treat all your buddies to a trip to Africa, on a chartered boat, complete with bottomless Cristal and lobster dinner's.
Question 3) You'll find that most credit card companies will increase your limit as you show responsibility automatically. They really do want you owing them-just be careful because terms will change as you increase limits.
A cool site with tons of financial info is fool.com-seriously, check it out!
Happy spending!

Answer 4

Question #1: If you make a full payment each time, your available credit will be higher than your balance which reflects positively on your credit report.

Question #2: You will have to use your card at least once a month or they may close your account for inactivity.

Question #3: Anytime your credit line is higher than your balance, it reflects positively on your credit. In your case, since your credit limit is 200.00 it would be wise to only charge at the most 50.00-100.00. Anytime you are too close to your limit, this does have a negative effect on your credit score.

I have had in the past over 12 credit cards (thank God I have none but 2 left and they are in good standing.) I learned a lot about credit scores when I purchased my home last year.

Rules to live by: Protect your credit always! It will lead to a sound financial future.

Answer 5

1) If you pay in full every month it is easier on your wallet, and does not make a significant difference to your credit either way.

2) Your credit score will increase just by having the credit line open over time.

3)A higher credit line helps, because you are using less of your available credit (as a %). However, typically the only way to increase it is through time.

Answer 6

You've received both good and bad answers. Yes, you should pay off each month if you can. The myth about maintaining a balance is just that--myth. Also, it is incorrect that you will lose accounts that are inactive. I have one that I haven't used for a year that's still alive and kicking. It costs them nothing to have it on the books, and it's good for my credit ratings because of the tempting high limit with no activity.

They look at your credit limit and the highest you've charged and take that into consideration. Keeping all charges below 33% of you your limit reflects very well. If you do have to charge a large amount, pay it off as soon as possibly, as this will counter the effect and it all settles down after a few months.

The credit score is fluid day by day. When I got a new card and when I got my new car I watched it dip and rise. Really fascinationg.

Answer 7

easiest way to increase your credit score is to only use under 30% of your credit limit and if you use more dont go past due, or overlimit. Also if you pay your balance off each month you avoid finance charges. I know Capital One ( whom i work for) proactively revieves their account for credi tline increases at any time ( any where from 6 months< for new cards> to 12 months up to 15 times a year and you never know when they will look over it.

Also use your credit card because it shows interest int eh company and they are more willing to increase the credit limit.

You never do know when the credit card company reports to the credit bureau it could be at anytime.

Any bad thing - long time with a balance, past dues, overlimits and your balance and credit limit all factors into your credit score.

I hope this helped some

Answer 8

Don't have more than 3 credit cards, and don't use more than 70% of the credit line for each. Paying in full every month is good; more important is to pay on time or you'll be assessed late fees. There is no grace period anymore.

You have to build credit. If you got your first card, keep in good standing and they will likely increase your credit line. Again, don't use all of this; keep it less than 70% and pay on time.

Answer 9

PAY ON TIME and IN FULL

Never use credit card for anything that maybe later haunt you