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| *Ostroff, Fair and Company>>>Credit |
Will I build up my credit if I use my credit card for everything, and then just pay off my balance every month |
Will I build up my credit if I use my credit card for everything, and then just pay off my balance every month Yes Yes you will. And finacially that is the smartest thing to do. Alot of people speculate that your credit score rises the fastest is you pay off like 90% of the balance every month and leave just a little. The reason being is because the card company is more likely to raise your line of credit faster if you do that. And that also increases you credit score. A major misconception that most people have is that they think simply having debt hurts your credit score. Thats not true at all, in facts is almost impossible to get your credit score above 700 without being debt at some point in your life. The key to good credit score is to NEVER miss any payment at anytime in your life. Including all types of bills. If you do that you are almost assured of having a good credit score. Sort of. I believe it looks better if you buy something, pay it off, buy something pay it off, etc.... Just maxing out the card and paying the min bal doesnt really show anything other then you can spend money well. It takes awhile overtime paying the min bal to show up. In the end both methods work, but I think it looks better to show a little controll. u can use it and just make sure u pay the min or all each month and u should be fine.. It takes time to get your score up Your credit will improve if you use it once per month or 50 times. The key is the total credit limit and the number of months the account has been open. Fixed payments (car loans) have a greater effect on your credit score. Yes it will. Just be sure to keep your balances below 30% of your credit limit every month and pay it off in full before the due date and you will be fine. I have done this with two credit cards for the last 2-years and raised my score over 150-points. Finance Manager for over 7-years. |
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