Credit Card Question from poor college student?

Question

I am currently a college student and I have had a bank of America Student Credit card with a 700.00 credit limit for about a year. I have been using the credt card occasionally and then paying the charge off immidietly from funds in my checking account with my banks online bill pay service. I suppose Im using the card a bit like a manual debit card. My question is will I build a good credit score this way or do I need to pay some interest somewhere? Im pretty sure the card has no annual fees but Im sure it has a high APR. Any thoughts?

Answer 1

This is actually a great way to build good credit. Pay the bill on time and don't carry a balance-- that shows that you don't spend more than you can afford to pay off, which is exactly what everyone should do.

A high APR is fine if you never have to pay any interest!!!

Answer 2

This is a great way to increase your credit. Another way to increase your credit is by getting a current account open, getting a Visa Electron card (if you don't already have one) and moving at least £600 into that account for at least six months. This will then enable you to move up to a Visa Debit card. It may sound like a lot of money but I have done this and it works, if you have savings just move £600 from one account to another then back again a couple days later. They don't care where the money comes from as long as it is going in each calender month. Even if you do £100 six times over the month. I know this sounds like a long way but it will pay off in the long run as credit reference agencies prefer if you have a Visa Debit as it shows you have good credit. Hope this helps you.

Answer 3

First you start making payments toward the amount that you know you're in debt. Make payments on time and as much as you can afford. Call the creditor, if you have not received a summons then the creditors have not filed suit against you. If the creditors have sent you a letter or called on behave of the debt owed; you have time. If the creditor continues to follow suit then the first appearance in court is an arraignment. The Creditor will state to the Judge with affidavit the amount that you owe. Remember this amount will be a combination of the Principle, Interest, and Fees. The Judge will ask you if you owe the debt. If you state yes the Judge will pass judgment against you. Before the Judge passes judgment explain to the Judge that you are trying to workout the means to satisfy the debt, and ask for a three month continuance. The Judge is likely to give you two out of the three months; however the Judge is not likely to extend you more than three months. You should not hide from the creditor. If you answer their calls, return their calls, or better initiate the call, you can probably negotiate terms to keep the creditor from going to court. One possible solution is to apply for a student loan, and consolidate this debt with the student loan. That will give you six month after you graduate before you have to start paying on the student loan.

Answer 4

By paying off your bill every month you will get a good credit score.
It is better to use it more often and then pay the balance when due - instead of just using it occasionally - try to use it on a regular basis. Then apply for another credit card and do the same thing.

Answer 5

you are building credit with that account. you sound like you keep it paid every month too, that's good..you go. i am a collector for aspire aspen emerge and tribute gold. the more that you pay on time the less apr that you'll have. each time that your late with a payment you're apr goes up. it does'nt matter that you don't have interest..you are building you credit score..if you've got a credit card that's the way to do it. you can also call your customer service dept and ask for a higher credit limit. they will raise your credit line. don't be late or get over limit on it and you'll do fine. GOOD LUCK TO YOU!!!

Answer 6

What you're doing is a great start. You're showing that you can handle credit responsibly. The next step, if you want it, is a larger loan. Maybe a used car, or a motorcycle? Whatever you do, don't fall for the trap of paying just the minimum payment. Those are set so that someone could pay for years before paying off the original loan.

Answer 7

I use first got my card as a student, having a credit card early Is good because It builds credit you just have to be discipline. This card is free with no hidden fees. When signing up you can get a free $50 by using my referral email link. All you have to do is sign up for the discover credit card. This is a card that will accept a wide range of people (including students with no credit) Here is the link if you are interested. https://www.discover.com/credit-cards/student/index.html?ICMPGN=HDR_ALLPS_CC_STUD_IT&mboxSession=1392577046699-143179 to get the $50 you have to email me at ross_linton@com cast.net and I will send you the referral email. If you sign up with the link above you will NOT receive a bonus.
Thanks!

Answer 8

It is always best to keep credit cards paid off in full if at all possible. I have an extremely high credit score, and have never carried a balance on my credit cards.

Answer 9

Carrying a balance of less than 50% of your credit limit will help you to build credit, as long as you are paying at least you minimum monthly payment on time each month. By carrying a balance, banks are able to see on your credit report that you are able to make montly payments on time. This is assuming that the card you are using reports to the credit bureaus.

Answer 10

As long as you pay your bill, that is all that matters in calculating credit ratings, not that you pay interest. In the past, 20+ years, I have paid about $100 in interest to all my credit card issuers.