What's the best way to build credit?

Question

I am a student that just received my first credit card and strictly want to use it to build credit. I have a high 19% interest rate and $300 limit. Can I still get good credit if I pay the full amount off each month or would I get better credit if I pay it off in a few months. What’s the best way to do this? Thanks !

Answer 1

You want to pay off your balance in full every month. That way you'll build our credit and avoid interest. Basically, you should use your card like cash to buy the things you would have normally purchased with cash anyway. (Again, and pay off your balance every month). Ideally, you'll want to use a *rewards* credit card to earn rewards from your spending.

As a student there are a handfull of good rewards cards available to you. A quick way to see which student rewards card will pay you the most for your normal spending (on gas, groceries, restaurants, etc.) is the rewards calculator at:
http://www.creditcardtuneup.com/?card_type=College+Student

Answer 2

You can use that card and immediately pay what you have spent with it if you can (for personal benefit). You can either pay off a full amount each month or you can pay it off over a few months, as long as you make payments by when they are do, you will raise your credit score.

You could get a cell phone, having a plan goes on your credit and shows that you are responsible and make timely payments. They also use your credit to determine if you can start a plan yourself. If you are not up there enough yet, you can use a co-signer, and after a few months take the plan over yourself.

Another way is to take out a VERY small personal loan (a few hundred) and pay that back over a set period of time. This is a quick way to do it, my brother did it in the past and it worked well.

Other ways include any sort of payment plans for products and services. Cars are an example of this. Financing options on electronics, etc.

By the way, if you raise your credit score, you can bring that interest rate down eventually ;-)

Answer 3

its a superb line. i've got been analyzing up on it and what helps build your credit is to have a stability on the oldest card you have and make the month-to-month money plus alittle greater. So paying all of it off at as quickly as wont harm your credit, even though it is going to possibly no longer improve it the two. i think of it relies upon on how many you have open with a stability and what the finished stability is. I examine additionally so you might by no ability have greater advantageous than 50% of your finished cut back used. by way of fact that could placed a damaging on your score.

Answer 4

It is actually better to keep a balance on your credit card to show that you can manage the responsibility...I am not sure why it looks better to credit companies if you have a balance instead of paying it off but, my husband checked into this a couple of years ago so we could get our house and they told him to always pay on your credit card but to leave a balance. (Maybe they are in cahoots with the credit card company and they split the interest that is paid...)LOL

Answer 5

Buy something small that you can pay off when the bill comes in. This way they will lower intrest rate and boost you spending limit up. Always pay bill when it comes in not when it is due. This will lower the amount you pay in intrest. Don't ever pay late.

Answer 6

Wow that is pretty high of an interest rate.

I would suggest that you try to pay it off as quickly as possible when you use it.

Answer 7

Keep it at least 50% under the limit. Make your payments, plus extra each month.

Answer 8

what i do is only use the card 6 days befor payday.then pay on payday,

Answer 9

its best to pay the total amount every month, when you get the statement.

Answer 10

keep it paid off