I got a new credit card and I was wondering how i could avoid some of the mistakes my friends have done. To maintain an excellent credit history ( at least as far as credit cards are concerned) how much of my credit should i spend on a monthly basis? 10% or 50% or something in between? Thank you.
2006-09-23 07:43:42 · 9 answers · asked by Anonymous in Business & Finance ➔ Credit
Trust me on this one. Spend only what you know you will be able to pay off on the next billing cycle and pay the bill off in full, even if it is only ten dollars. Keeping an excellent credit score means paying the minimum amount due by the due date. But, I would go further and pay off the bill at one time. I have already gotten myself into a debt-drowning situation and I have learned a lot from it.
2006-09-23 07:52:55 · answer #1 · answered by ironchain15 6 · 3⤊ 0⤋
Don't spend more than you can afford to pay. Credit cards are NOT free money as far too many people think they are. Be responsible. Always remember that what you buy for one price increases every time you don't pay off your credit card each month. Before you buy that sweater for $63.97, ask yourself do I really "NEED" it or do I only "WANT" it???? If you do buy it & only make the minimum payment on your card, let's say it's $10.00 & your interest rate is 17.99% , your $63.97 sweater is now a what?
$75 plus sweater, something like that. Maintain an excellent credit history by paying your bills on time & paying the full amount. For your credit cards, DO NOT spend like you actually have it!!!!
2006-09-23 15:31:36 · answer #2 · answered by More Lies & More Smoke Screens 6 · 1⤊ 0⤋
I would say it depends on how much you make and what other expenses you have. Using a credit card is not a bad thing as long as it is done responsibly. I would not go out the day you get it and max out your credit limit. I would advise that you spend only what you can pay off at the end of the month, as to avoid costly interest and service charges.
2006-09-23 14:52:50 · answer #3 · answered by msi_cord 7 · 2⤊ 0⤋
How about "as little as possible." You already sound like you're destined for the same fate as your friends if you're trying to come up with how much money you can spend that you don't need to spend. Put the card away and only use it in an emergency or if you can pay it off each statement. In addition to that, never spend more than 30%
2006-09-23 17:36:10 · answer #4 · answered by misslabeled 7 · 0⤊ 0⤋
Very simple. Don't spend more than you make less rent and monthly fixed costs like gas, utilities, food etc. As you as you have control and pay the balance off each month, you will have good credit.
2006-09-23 15:14:55 · answer #5 · answered by Anonymous · 2⤊ 0⤋
You don't have to spend a specific amount a month, the farther you away you stay from your limit, the better it reflects on you. There's no amount that you need to spend to have good credit, as long as you have an open account, in good standing, no late payments or missed payments, then you are building credit. Check out http://finance-girl.blogspot.com/2006/09/raising-your-credit-score-who-doesnt.html for tips on raising your credit
2006-09-23 16:28:54 · answer #6 · answered by Anonymous · 0⤊ 1⤋
Try and always keep your spending to 1/2 of what your credit limit is and try to pay more than the required monthly payment, like if your minimum payment has to be $20, pay $30 to try and keep the rolled over amount less and the finance charge less.
2006-09-23 14:52:19 · answer #7 · answered by crazzkc24 4 · 0⤊ 2⤋
half only, that's what the creditors suggest to get the best credit possible from a credit card
2006-09-23 14:48:57 · answer #8 · answered by ann.natalie 4 · 0⤊ 2⤋
Let me answer your question and not preach to the way these other folks are doing....
According to FICO, the folks who developed the credit scoring methods, you should try to keep it at 25% of your credit limit.
2006-09-23 16:17:46 · answer #9 · answered by Anonymous · 0⤊ 5⤋