i have a credit card that i pay off every month but its only been like 4 months. and my brother says dont pay it off just make the minimum payments cuz its better for your credit that way. i always thought the opposite. i pay on time everytime. and im 22 and live with my parents. no car payments.low paying job
2007-10-08 06:54:02 · 11 answers · asked by drummergirl 3 in Business & Finance ➔ Credit
Continue to pay your card in full to avoid financial charges. Credit agencies reported ending balance from your statement, doesn't matter how you pay it back. Use your card in smart way - your ending balance should not be more than 40% of your credit limit.
You need at least 3 active trade lines (credit cards, auto or personal loans, etc.) to make sure that your credit has a solid base. Try to keep you balances on the above mentioned level, but try not to close them or keep $0.00 balance. This might hurt.
Keep in mind, new trade line will affect your credit in positive way in about 3 month after you opened it.
Deliquences and collections hurts a lot. Try to avoid these records. Normally, it takes at least 6 months to build good credit from scratch.
Provide details, if you need more help.
2007-10-08 08:27:47 · answer #1 · answered by roginad 3 · 0⤊ 0⤋
Carrying a balance and making payments instead of paying in full every month DOES NOT help your credit score. People come up will all sorts of reasons why they think making minimum payments is better but the simple fact is that credit cards do not report how much you payment was. The just report if it was on time or not.
Pay the card off in full or make minimum payments. Your credit report will read exactly the same!
Don't carry a balance. Why pay interest? And don't fall into debt.
As to building a great credit score, it takes time. Most important thing is to always pay on time. After a year or 2 of consistent on time payments, you will have a good score.
2007-10-08 07:15:47 · answer #2 · answered by bdancer222 7 · 1⤊ 0⤋
You actually don't want to have a lot of credit cards, particularly if you're just going to use one to build up history. That can actually hurt your score, particularly if you're applying for ones from the same company. Basically, a credit card is like taking out a loan, and the more cards you have and don't use, the better your score is, but at the same time, it's crazy expensive to keep up with, which is where it starts hurting you. You've got a good start with you credit utilization and balance payments, maybe get one or 2 more cards, and make sure to use them at least once, since that makes for a better credit history.
2016-04-07 21:40:28 · answer #3 · answered by Anonymous · 0⤊ 0⤋
If you want to improve you score you need to have a small balance for a few months and make a little more than the minimum payment (yes on time). After 5 or 6 months you will have credit card companies coming out of the woodwork to try and get you further in debt.
By paying off your card in full every month, the credit companies feel you are a bad risk because they AREN'T MAKING ANY MONEY.
In order to be attractive to credit companies you have to let them earn a little. Yes, it seems backwards, but it is true.
Just be careful and don't use this as an excuse to max out your card and make min payments. Once you start getting offers for bigger credit lines and better interest rates you will know that your rating has improved. Then go back to paying it off every month.
2007-10-08 07:04:44 · answer #4 · answered by Gem 7 · 0⤊ 2⤋
You are doing the right thing. Your brother gave you good guidance. Now don't blow it by missing any payments. I see credit reports everyday from people who had great credit, but lost 50-100pts when they started missing payments. The sad part was, it was just poor bookkeeping -- they had the money. Now you need just a bit more time. Perhaps add another credit card that has a bit higher limit. I'm not sure what your hurry is...perhaps a new car? Check with your bank, they may be willing to work with you.
2007-10-08 07:02:25 · answer #5 · answered by Major Score 2 · 0⤊ 0⤋
Put money into a savings account, then go to your bank and do a secured loan, borrowing against the money in the account. Make regular payments, don't pay off early...do this again and again...it will build your credit the easiest.
2007-10-08 07:02:56 · answer #6 · answered by araknid80 2 · 0⤊ 0⤋
to raise credit score
1. Always pay on time or ahead of time.
2. maintain low balances on credit cards
3.To boost your score: Don't charge anything for at least 60 days before applying for a loan
4. keep your total potential debt to earnings load low - If you have a card with a $15000 credit line, you may ask them to reduce it to something more realistic, like $5000.
5. You should have a recent history of both installment or term (Car or house loans) and revolving credit.
6.To boost your score: Don't close unused accounts when you transfer debt.
7.To boost your score: Consider opening another credit-card account or two, or taking out a car loan or small bank loan.
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http://www.bestcreditrates.net
2007-10-08 19:42:27 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Keep up with the full payments on time! everytime!
2007-10-08 06:58:50 · answer #8 · answered by The_Last_Starfighter 3 · 0⤊ 0⤋
Just keep doing what your doing, you don't want to get caught it that trap of accumulating a high balance.
If you want to build your score you can ask someone who has great credit to add you on their credit card.
2007-10-08 06:59:15 · answer #9 · answered by lemondrop1986 2 · 0⤊ 3⤋
Checking and savings -
Small loans andCC's paid up
2007-10-08 06:57:44 · answer #10 · answered by Ron K 3 · 0⤊ 1⤋