First time credit card (how to pay each month and raise credit score).

[Anonymous]

Hi I just received new credit and a first time credit card and would like to know the formula and strategy for paying off my credit card on time each month so that I can increase my credit score. Can you suggest an online calculator to help me do this.

[Anonymous]

CAPITAL ONE 1500
HSN 500

[irrational]

Regardless of anything else you do, the first thing I recommend you setup your card(s) for auto-pay. Have the credit card company automatically debit your checking account each month for the FULL balance. You'll never have a late payment!

[Closingracer99]

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@irrational wrote:

Regardless of anything else you do, the first thing I recommend you setup your card(s) for auto-pay. Have the credit card company automatically debit your checking account each month for the FULL balance. You'll never have a late payment!

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Never Auto-pay the Full Balance IMO and should only use it as a fail safe..... Make the auto pay the min payment incase you ever forget to pay it before the bill is due. I Would either set it up through the Credit cards website and pay it off there ( IMO the easier and better way since Your Bank doesn't actually send a check to the Bank that is issuing that CC) Or You can send the money through your bank and they basically cut a check to the Bank in your name 

[irrational]

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@Closingracer99 wrote:

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@irrational wrote:

Regardless of anything else you do, the first thing I recommend you setup your card(s) for auto-pay. Have the credit card company automatically debit your checking account each month for the FULL balance. You'll never have a late payment!

---

Never Auto-pay the Full Balance IMO and should only use it as a fail safe..... Make the auto pay the min payment incase you ever forget to pay it before the bill is due. I Would either set it up through the Credit cards website and pay it off there ( IMO the easier and better way since Your Bank doesn't actually send a check to the Bank that is issuing that CC) Or You can send the money through your bank and they basically cut a check to the Bank in your name 

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I agree in that it should be a fail-safe, and that the goal should be to pay before the statement cuts... But... I also believe in never paying a dime of interest, and since I only spend what's budgeted each month, it really doesn't matter what date the card is paid, the money was there before I spent it.

just my 2-cents.

Regardless, auto-pay one way or another is a good suggestion. Late payments SUCK.

[Eyisila]

I am by no means as experienced as others on this forum, but I will give it a shot.

First, is to possibly get 1 more card, even if it is secured.  I have read that having at the very least 3 cards is optimal.  Second is to keep utilization less than 10%.  For optimal scoring have all cards at $0 and one reporting at 1-9%.  This is for best scoring results and optimal scores for possible new applications.  But as others have said, it is something that should, most likely, be practiced as a "norm". 

If you are not planning to app anymore, at least for a while.  Then the best thing would be to use the cards you have, with the possiblity of that 3rd card, pay in full each statement, or what you can (some can do the PIF, some cannot).  But, of course, pay the minimum at the very least.  Grow the cards for about 6 months, preferably 12 and scores should improve/grow. 

As far as the strategy for paying on time each month, it's really to each his/her own.  If you charge small amounts, you can pay in full.  If you cannot do that, then of course pay as much as you can or are willing to, based of at least the minimum due.  If you want your current cards to grow, it's a YMMV thing as different creditors like to see different things.  Some like to see balances left, some like to see heavy usage etc etc.  Mainly it is a do whatever is most comfortable for your income and spending habits.  Do not over extend yourself, manage the cards well and they will grow (although some say Cap One might not LOL), and so will your scores.

[SevenNEW]

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@irrational wrote:

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@Closingracer99 wrote:

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@irrational wrote:

Regardless of anything else you do, the first thing I recommend you setup your card(s) for auto-pay. Have the credit card company automatically debit your checking account each month for the FULL balance. You'll never have a late payment!

---

Never Auto-pay the Full Balance IMO and should only use it as a fail safe..... Make the auto pay the min payment incase you ever forget to pay it before the bill is due. I Would either set it up through the Credit cards website and pay it off there ( IMO the easier and better way since Your Bank doesn't actually send a check to the Bank that is issuing that CC) Or You can send the money through your bank and they basically cut a check to the Bank in your name 

---

I agree in that it should be a fail-safe, and that the goal should be to pay before the statement cuts... But... I also believe in never paying a dime of interest, and since I only spend what's budgeted each month, it really doesn't matter what date the card is paid, the money was there before I spent it.

just my 2-cents.

Regardless, auto-pay one way or another is a good suggestion. Late payments SUCK.

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Always the best attitude! A past community leader used to say that she looked at CC as if they were debit cards with very low reflexes.