Do I need to charge on credit each month to raise my credit score?

Question

My Credit isnt great. FICO of 599... Anyway, I just got some new credit cards, Like a mastercard, target card, orchard bank, and Macy's. I have charged on almost all of them to have them start reporting to the credit bureau's.

My question is do I have to carry a balance each month over to get my score up? Do I have to use them every month??

I already paid all of them off except 100 on my target because I havent recieved my order yet. I got all of them with in the last month and a half. I know my score will go down a little from opening all at once, but Was told it would go right back up....

Answer 1

From looking at the list of cards you acquired, it sounds like you are a reader at creditboards.com Credit forum. You do NOT have to carry a balance, or use the cards every month, to raise your score.

http://www.myfico.com/CreditEducation/WhatsInYourScore.aspx explains exactly what goes into your credit score and how different things affect it. I could write a long answer here but going to the link will give you even more information. Check it out.

Answer 2

By implementing these tips you could save hundred of dollars in interest in the long run and put cash back in your pocket in the short term.

1) Avoid using cash and borrowing from family for all your purchases. In the eyes of creditors no credit history is the same as a bad credit history. You may get away with paying cash for your car but when you buy your first home it will come back to haunt you. Even if you can afford to borrow or pay cash try opening an account to buy your furniture, automobiles, or home improvements. A diverse credit background will help with your credit score.

2) Your credit report tells all. Do not lie or stretch the truth to lenders, banks, or employers. They will easily catch you and the consequences are not worth it.

3) Do not cancel credit card accounts to improve your credit. The intended affect may be the opposite of what you expect. You can hurt your credit by canceling your credit cards; especially if you have a long history with the account. Losing a ten or twenty year credit history isn't worth it. If you absolutely must stop using a card, try shredding it. An open account that doesn't have a balance looks far better then no credit account at all.

4) Starting early is always better when establishing credit history. Getting a teenager or college student a credit card is a great way to get their history started. For those who don't trust their child's judgment yet there are many prepaid cards that report to credit bureaus. Read more from: http://www.credit-card-gallery.com/article/136,Seven_Must_Know_Credit_Tips

Answer 3

No, carrying a balance does not help your score. Use them periodically and pay them in full each month. Most important is to pay on time. After 6 months to a year, you should build up a credit history and improve your score.

Don't go out and get a bunch of credit cards hoping to improve your score. Having too many credit cards can cause all sorts of problems. You have to track and secure all of them. I personally recommend only two major credit cards and only have store and gas charge cards if there are special circumstances.

Answer 4

No, but make sure you don't spend below 25% of the spending limit.