i just got this credit card like one week ago and it has a $500.00 limit and i would like to know whats the best to way to improve credit score and how long does it take?
2007-09-08 23:45:25 · 4 answers · asked by playa 1 in Business & Finance ➔ Credit
use your card often and each month pay off the balance . If you want to improve your credit score it sometimes helps to get a 2nd card and do the same. The lenders want to see that you have a responsible attitude to borrowing and paying back as agreed.
2007-09-08 23:54:26 · answer #1 · answered by Anonymous · 1⤊ 0⤋
To improve your credit score so that you can eventually ask for a higher limit, use the card and pay the balance each month. This will avoid interest and will show that you are reliable.
However, your question indicates that you are headed for trouble. You want to use your credit card to buy a motorcycle, which means that you want to borrow money with the card that you cannot repay. You will get sucked into making minimum payments and paying a very high rate of interest. The system is designed to ensure that you never repay the credit card. What you plan to do with your credit card is the same thing that has gotten thousands of people into a never ending cycle of borrowing, paying high interest, getting overextended, and eventually filing bankruptcy. As a result the bankruptcy laws have changed so that now it is much harder to eliminate the debt you accumulate with credit cards.
If you use your credit card to spend more than you can repay each month, you are asking for trouble.
2007-09-09 00:07:44 · answer #2 · answered by Anonymous · 0⤊ 0⤋
When you charge something, either pay it off monthly, make more than the mimimum payment, or make the minimum payment. Regardless, make it on or before the due date. Even a day late and the company can tack on late charges and report you to the credit bureau. No pay, slow pay all affect your FICO score and will determine what kind of credit. if any, you get in the future.
2007-09-09 04:29:22 · answer #3 · answered by drewxjacobs 6 · 0⤊ 1⤋
Before you jump into a big loan payment for that motorcycle, consider saving up for it. You always get a better deal with cash in hand. At least come up with a big down payment. Then you'll have smaller payments and pay less interest.
2007-09-09 04:26:29 · answer #4 · answered by bdancer222 7 · 0⤊ 0⤋