Question about my credit card?

Question

I have a secured credit card for $200. It is new so I haven't made my first payment yet but its due 8/4. It says minimum payment due is $15. I have $154 available, I was thinking I'd spend about $50 more. But here is where I'm unsure..

It is correct that I pay the full $200 back right? Also, to help build my credit how much of the $200 should I be spending a month?

I would appreciate any suggestions. Thanks

Answer 1

The secured card is where you put a deposit and they give you a credit line to match. In your case you placed a deposit of $200 to get a $200 credit line.

If your available credit is $154 you have already spent $46. Ideally you should pay the entire $46 to avoid the interest, but you must pay at least the minimum of $15. You can spend another $50 now, but it won't show up until your next months statement.

As for building credit, you need to spend no more than 30% of your available credit. So with the $200 limit that is only $60. Because you have a very low limit card, it is only helping you somewhat. If possible see about adding more to your limit. Try to get to around $300-$500.

Answer 2

A secured credit card means you have given them money to cover the card should you not pay your bills.

You should pay the entire balance due, when it's due. That doesn't mean you should spend more just to reach the $200 limit, it means you should spend what you can afford to pay now.

If that's less than $200 then you don't have to pay $200. If your amount due is $45 and minimum payment is $15, pay as much of the $45 as you can, but not more.

Answer 3

You should pay your entire balance in full every month. Don't fall into the trap of making minimum payments each month.
When you charge something, make sure you have enough money to pay the bill in full when it arrives.
Spend only the amount you can repay immediately and you will build a strong credit history

Answer 4

If you pay off your entire balance, you won't be paying interest, which is a good thing. So, don't just pay the minimum.

Whatever you charge on your credit card, you will have to pay back, and if you don't pay it off within a month you will be paying interest on that as well.

I suggest you make nominal purchases and pay the entire amount off each month. The last thing you want to do is end up owing $1,000 for a $200 purchase because the interest keeps compounding.

Answer 5

To build a good credit rating, just make your payments on time.

Also, if you are trying to build your credit rating, it is better to not pay the entire balance at once. This is so you can build a longer history of making your payments on time.

After you have established a good credit rating, then you should consider paying off the entire balance each month, if you can afford it.
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Answer 6

The best way is to pay it in full - you will improve your credit score. You pay only $200-$154=$46. You can spend everything, but pay back the full amount! Always!

It's explained here:
http://fundszine.com/28-how-to-improve-a-credit-score-or-get-one-if-you-do-not-have-it/

Answer 7

The best may to maximize your credit is to always keep 80% free. With a limit of $200, this is difficult but will improve your rating faster.

Answer 8

Find very useful info and tips on getting and managing credit cards on http://creditcardmanager.credithelperhom