I got a credit card 5 months after my 18th brithday and I told myself to only use it to buy something for like $15 and then pay it off. My car started to mess up and I had to take it to the shop. I'm full-time student and I work part-time so I don't have money laying around to fix my car so I used my credit card. My car needed a starter which was over $400 because of labor and a oil change. So short and simple I put it on my credit card and i haven't charged anything since (this was in september). The minuim payment is $20 each month (it's a student card) but I pay $50 three days before due date to avoid intrest charges (there have been none). My question is having this balance on my card and not charging anything new, how is it affecting my credit score. Is my credi score just staying the same or going up?
2007-11-21 06:38:59 · 4 answers · asked by aric_714 4 in Business & Finance ➔ Credit
There have been no intrest charges added to my card since I've gotten it since it's a student card and I pay more than the minuim. I paid close attention to what I was agreeing to (and I monitor my account daily) and the only way I get charged interest is the second that I just pay the minuim.
2007-11-21 07:42:15 · update #1
Not a whole lot to worry about but you score took a temporary hit from the large balance. As your balance goes back down your score will go up as you pay it down then it will return to where it was when it's all payed to 0. When you have a large balance over 50% of your credit amont you are in the negative and you should not spend more on it untill you get under 30% avalable credit. you doing well it's no big deal.
2007-11-22 14:10:54 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Actually, the fact that you are using it is giving you a history, which can help your score.
Note: paying $50 before the due date will avoid late charges. If you leave a balance, you will get hit with interest next month.
2007-11-21 15:37:13 · answer #2 · answered by Ted 7 · 0⤊ 0⤋
Your score may have taken a temporary hit with the big charge, but as long as you are paying it off on time there's nothing to worry about. Just avoid late payments.
2007-11-21 14:45:05 · answer #3 · answered by npk 7 · 1⤊ 0⤋
It all depends. But why bother? Are you looking for auto loan or mortgage? In your situation only negative items will really hurt your credit. +/- 20 points do not make real difference for everyday purposes.
2007-11-21 17:03:13 · answer #4 · answered by roginad 3 · 0⤊ 0⤋