What is considered good credit behavior?

Question

I have one credit card and I was wondering whats the best way to use it so my score will go up?

Answer 1

1. Pay all bills on time.
2. Think twice before closing accounts.
3. Minimize credit-card applications.
4. Keep balances low.

Answer 2

I agree with other commenters on these points:
1. Pay your balance in full each month (that way you avoid interest and still build your credit)
2. Utilize your credit by charging you what you would normally spend anyway (gas, groceries, etc.)

I would add the following valuable tips:
3. Make sure you use a *rewards* credit card. That way you'll be *earning* money to build your credit.

4. The best way to find the card that will pay you the most for your normal spending is the rewards calculator at:
http://www.creditcardtuneup.com/

Answer 3

Hi!
Use it with responsibility..that means a couple of things..and may be very different from person to person.

Some would say (I'm in this group now) you do not have to carry a balance in order to build credit. I have seen this first hand..even though my first impression was somewhat different.

I would say it is wise if you do carry a balance..never use more than 40% of any available credit line. Any more than that..and most would agree it is a bad sign.

I can offer some advice from good ole been there-done that department. If you are new to all of this. If this is a unsecured card..chances are good if you manage this account well...more will come..automatically. Don't go overboard.
Don't get in over your head.

Use good common sense. Some credit card companies play games with payments..especially mailed ones. Mail a payment super early..and see how long it takes. Follow up that payment with another..and learn. See when it posts..and be aware many can take much longer than others.

Answer 4

If you have lived in the same home for at least a year and held a job for the same period of time, you may qualify for small lines of credit with department stores and other businesses within your local community. Make sure these businesses report your account information with the three national credit bureaus or you will be wasting your time using their cards to build your credit.

The interest rates on many store cards may be higher than a typical credit card, so make sure to keep only a small balance on any of these cards you may have. It's often a good idea to avoid paying off your entire balance so you can build a repayment history for your fledgling credit report. As long as you don't max out your cards and make your required minimum monthly payments you'll be fine.

Another way to build credit is to take out a small loan from a local credit union or bank where you are a member. If you can avoid it, don't use the proceeds of the loan except to repay the debt. You will pay a small fee in interest but that's often a small price to pay for building your credit.

Once you've established a credit record and creditors can see you have no problems paying off your debt you may start receiving offers from major credit card companies. You could start getting all sorts of mail from Discover, Visa, MasterCard and even American Express. Get all information about building your credit at: http://www.credit-card-gallery.com/article/43,Many_Credit_Repair_Techniques_Can_be_Used_to_Build_Credit

Answer 5

Paying your credit card up in full each month and also ANY other bills is good behavior. Paying on time or even early will effect your score in a positive way.

: )

Answer 6

Use your card so there will be active transactions for that card. just make sure you pay at least the minimum due before due date to avoid late charges.

Answer 7

pay all your dues on time. your credit limit will go up on its own

Answer 8

buy small things like gas, food, etc.. and pay if off right when u get the bill..