will the amount of purchases I make on a credit card make my credit better if I just got a credt card????
2006-10-11 12:04:54 · 11 answers · asked by Anonymous in Business & Finance ➔ Credit
It makes your credit really good if you fully pay off your balance each month, or every other month...and don't max them out!
2006-10-11 12:08:58 · answer #1 · answered by Kiah 3 · 0⤊ 0⤋
Depends on the credit you want. Just having a card that you don't use will help your score more than not having one. However, having too many even without any balances reduces the amount lenders think you can borrow and you might not get say a house or car loan because you have "too much credit" extended already.
If you want the credit card companies to increase your limits, you have to use them and show you can pay the minimum due on time. This is something to be careful of because if you continue maxing out your credit card(s) and they continue to increase your limit, you might get to the point where you are paying such a high monthly minimum balance that it's all you can afford and you'll never pay off the balance. (remember that's what keeps them in business is the interest rate you pay. If you're paying off the card every month or more than the minimum balance then it doesn't benefit them as much. Their goal is to keep you paying interest but that is not in your best interest...)
There's many pluses to using your card and paying the balance off every month. E.g., use it for things like groceries, gas etc that you'd normally use a debit for and get free airline mileage or other perks certain cards offer. To help you keep track of your expenses though, enter the purchases into a check book register daily and keep a running balance on your bank account. Then when the bill comes, you'll have the money to pay it.
Well, that was longer than I intended... hope it helps. =)
2006-10-11 12:28:47 · answer #2 · answered by bluestem0916 3 · 2⤊ 0⤋
you like a job. i comprehend you suggested you have a mushy circulate of "money" yet mastercard businesses dont care approximately that.. they desire data (pay examine stub) which you have an earnings.. additionally, its such an hassle-free false impression that a mastercard will make it easier to construct credit.. What builds your credit is a few thing like your cellular telephone, paying that on time, having a tremendously fat financial employer account (shows you comprehend the thank you to shop money) and a few thing like renting an residence.. people generally get into mastercard debt because of the fact they think of a mastercard will help their credit, and its truly no longer the case..
2016-10-02 05:06:30 · answer #3 · answered by hobin 4 · 0⤊ 0⤋
No, What builds your credit up is making at least the minimum pyment and make it on time. The longer you have it the better your credit.
2006-10-11 12:14:55 · answer #4 · answered by Anonymous · 0⤊ 0⤋
I'm in the same boat with the card. You need to pay the bill that should help.
2006-10-11 12:08:33 · answer #5 · answered by Good Grief 4 · 0⤊ 0⤋
I'm pretty sure it all just depends on how well you keep up with payments.
2006-10-11 12:12:21 · answer #6 · answered by xbluemoonfaeryx 2 · 0⤊ 0⤋
you'll increase your score by paying the card every month.
2006-10-11 12:10:44 · answer #7 · answered by carlos 5 · 0⤊ 0⤋
not necessarily the volume, but the prompt payment gets your
relationship improved.
2006-10-11 12:33:31 · answer #8 · answered by The Advocate 4 · 0⤊ 1⤋
LMAO LMAO LMAO I THINK PAYING THE BILL WOULD HELP! LMAO LMAO LMAO wait wait no no buy a ton of things and dont pay the bill! that will definately help!
2006-10-11 12:13:01 · answer #9 · answered by conap31 2 · 0⤊ 2⤋
ONLY IF YOU KEEP UP WITH YOUR PAYMENTS IF YOUR LATE YOUR CREDIT WILL SUFFER
2006-10-11 12:12:16 · answer #10 · answered by scouse2026 2 · 0⤊ 0⤋