i just recieved my 1st one from Capital one.. Whats the best way to maintain it, and enlarge my credit limit.. Do you make 1 big purchase and pay it off in full.. do you pay the balance off completely before buying more stuff.. Do you use it for everyday use and keep it to a minumum?
Whats the smartest way to shop with credit?
2007-09-08 13:43:24 · 9 answers · asked by ♥ LovingMyLittle1 4 in Business & Finance ➔ Credit
ALWAYS ALWAYS ALWAYS pay it off in full each month!!!!! The credit card fees go way up the longer you maintain a balance that keeps getting rolled over and you'll pay so much more than you need to.
DO NOT be down to the wire, if they don't get your payment on the due date, if it's one day late, they can legitimately raise your interest fees up from 16% to 25% and you wouldn't know till you look at your statement and see the much higher number.
Start with small purchases, one every 3 months or so, and pay it off. I use mine to buy gas for the car, and to pay for hotel costs when I'm out of town. Sometimes for food at the grocery store, but I learned the hard way to pay it off EVERY month, completely.
It's there for important things like car repair and vet bills, but remember it's money you need to pay eventually and the longer it takes you to pay it off, the more it's going to cost you.
2007-09-08 13:51:18 · answer #1 · answered by Elaine M 7 · 1⤊ 0⤋
The smartest way to use a credit card is to use it sparingly. Do not use it for every expenditures. Only use it for what you know you can pay in full by your due date.
To establish your credit & be able to request a higher limit, use the card for the next few months (say 6?) and pay it off every month by the due date. After the six or so months are up, call Capital One and request a limit increase.
Rule #1 with a credit card should be to NOT live beyond your means. If you don't have the money to pay the balance in full every month, don't carry the card with you all the time. This will prevent you from "impulse shopping". Of course, if you have an emergency come up (i.e. the engine in your car blows up, your house burns & you have no where to live, etc.), you'll have credit available so that you can take care of yourself. Just be sure to pay it off as quickly as possible.
The banks are not offering you the card for your best interest - they're doing it to make money off of you.
2007-09-08 14:55:02 · answer #2 · answered by Babs 4 · 0⤊ 0⤋
Depends on what your are trying to do. If you want to establish more and better credit, purchase a small item ie:$ 100 and take 6 months to pay it off. Anything paid off prior to the 6 months is not considered credit. It is unwise to use it everyday. The credit companies have "dual" interest schedules and you will wind up paying a ton in interest. For information on credit, go to buyer scams. com. It a site that is not as yet finished but you might get some good information off of it.
2007-09-08 15:06:37 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Buy only what you can pay off the next month. If you are making a big purchase,pay it off before you put anything more on your credit card. With interest so high,it's best to pay it off each month. Keep up your payments and they will enlarge your credit.
2007-09-08 13:58:16 · answer #4 · answered by Sebastian 4 · 0⤊ 0⤋
best way to shop with a credit card? Don't!
make reasonable purchases and pay them off in full regularly... so that means never ever buy more than you can afford to pay off at the end of month
if you pay your bills regularly and in full, believe me, they'll increase your limit in no time
Be careful... be very careful. Credit cards are seductive..
2007-09-08 13:49:40 · answer #5 · answered by teritaur 5 · 1⤊ 0⤋
The smart thing is to use it to pay for everything then pay it in full at the end of the month. That way you are building a strong credit history and you are using their money free for the month.
2007-09-08 13:49:27 · answer #6 · answered by Suzy 5 · 0⤊ 0⤋
just buy small things and pay them off so you keep a balance of $0. that way the interest won't screw you and you continually build credit. it doesn't really matter the price of the purchase just as long as the payments are always made and are on time.
2007-09-08 13:51:31 · answer #7 · answered by ljm 3 · 1⤊ 0⤋
Only charge what you can pay in full each month.
I use a cashback card and use it for all purchases. They pay me to use their money.
The most important thing to always pay on time. Capital One is very quick change the interest rate to the default rate.
2007-09-08 13:54:04 · answer #8 · answered by bdancer222 7 · 0⤊ 0⤋
Don't use it at all!! Cut it up! The best advise I received was to save my money and use cash only. cash is king.
2007-09-08 14:14:17 · answer #9 · answered by Anonymous · 0⤊ 1⤋