To charge or not to charge? that is the question...?

Question

I am trying to rebuild my credit after ID theft and a couple of small misteps I made. I obtained a secured credit card and another credit card - should I charge something each month and pay it off immediately? Or just not charge anything and have the credit cards? Which has the most positive impact on raising your credit scores? They are low limit cards and I am in a position to pay them off each month. thank you!

Answer 1

Charge some, but don't max out the cards... by the time you pay off (on time an in full, I hope! ...but you've said that already), your next statement should be in the mail. Eventually, you will probably qualify for a higher credit limit. If you pay off your cards every month, you don't have to worry about the high APR you're probably being charged. Good luck!

Answer 2

That's clearly up to you. Reason I say that is this. It doesn't hurt to charge something and pay off the balance in full every month. Banks and creditors run game by telling you that it's not good to pay in ful every month becuase they can't make any money off the finance charges! It's only bad for THEM. Remember it's a CREDIT card. It's not your money, if it were then it would be a debit card. That money has to be paid back, or they wouldn't have been willing to charge anywhere from 9-29% interest when you don't pay before the grace period from the get-go! My advice is to make small purchases ($20-50/month) that you know that you're able to pay off if you don't have the cash already. Signature loans look bad if you pay those off in full, but that's completely different from credit cards. The interest is computed differently. Use them only in dire emergencies. And use your debit or check card for daily purchases, especially fast food. How would you favorite burger and fries taste if you knew that you were paying interest on it? It probably would give you indigestion, I know it would for me. But seriously, be careful how you use them.

Answer 3

by all means, charge something if you need to. pay it off at the end of the ,month and you can bring your score up. the main thing is, pay it on time. dont be late. period. as for their not making any money off of you, they also charge the people you buy from. matbe try a gas card and pay it at the end of the month. you have to buy the gas anyway. this way it can help your credit. mostly, pay on timr, and if you run up a balance that is more than you can pay in one month, pay more than the minimum due. it helps. hope this helps.

Answer 4

YES it looks goo as long as you don't keep a big balance but to some companies cards mean revolving credit and they frown upon that

they are good for repair to your credit and to help establish credit and you need repair

best of luck hope your credit is good again real soon

Answer 5

Charge something (small) and pay it off every month; keep your utilization under 10% if you can. You do not need to carry a balance to raise your score.

Keep paying on time and your scores will improve. Good luck!

Answer 6

Charge about 2/3 or 66.6% of your credit line and then pay it off when you get the first bill. That is the fastest way to rebuild your credit... I promise.

Answer 7

I would say definitely use them and pay them off. Unused cards don't do a think to improve your credit score. Good luck, I hope they caught the person who ID Theft-ed you.

Answer 8

use them but dont pay them off too quickly i was told by my savings and loan advisor that i paid my loan off too quickly and now is a bad credit thing cause i did not leave them on my history long enough . so be carefull .

Answer 9

This may sound dumb, but why wasn't your credit restored fully?