What is better for building your credit?

Question

Hi,
I just got my first credit card, and my credit is really bad. What's better for my credit, paying the full balance every month, or just the minimum over a longer period of time?

Answer 1

pay in full --they will keep increasing ur limit of credit-----just try to pay it in full all the time---use it and pay it every month

Answer 2

As a person new to credit myself, what I have found to be the best thing is to spend around the minimum amount that you have to spend per month (if your card has a plan like that...mine's like $15). Pay your card off in full every month. Not only will your credit rating raise, but your credit limit will rise.
Use it only when you need it. This is something I struggle with all of the time, but I've been getting better with it. Avoid impulse buying at all costs.

Answer 3

All the advice I've read on the topic advises to charge no more than 25-50 % of the card limit and paying it full at the end of the month. Doing that, you'll avoid paying high interest - what happens when you charge it in full and pay only the minimums. Know, what you can afford to pay for each billing cycle, 25 % of a 1,000 $ limit card is easier to pay than that of a 5,000 $ (maybe decrease the limit if that's the case. But make sure you pay in full. Just charge your expenses you do anyways (like gas or basic groceries) and keep track of them!

Answer 4

1. Always pay on time or ahead of time.
2. maintain low balances on credit cards
3. keep your total potential debt to earnings load low - If you have a card with a $15000 credit line, you may ask them to reduce it to something more realistic, like $5000.
4. I was told by an underwriter that having just two cards, a major credit card (VISA, MC) and a consumer card (Sears, best buy, etc...) is the best mix for revolving credit.
5. You should have a recent history of both installment or term (Car or house loans) and revolving credit.

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http://www.bestcreditrates.net

Answer 5

Use it
but use it wisely

Pay on time, if you could pay the whole balance before cut off date, not the payment limit date, but the cut off.

that's all