credit card usage

[badcredithelp]

OK, sorry if this has been discussed elsewhere, but I have a question regarding credit card usage.  This is my first open credit card in about three years, and I want to use it ONLY to increase my FICO scores.  So, what is the best way to do this?  I know that I want the util. to be less than 10%, but do I want to pay in full each month or do I want to carry a balance?  Also, how long will it take for it to have a positive impact on my score and how long should I wait to ask for a CLI?

Thanks! 

[Anonymous]

Couple of ways you can approach it. You can either pay in full each month or you can put 100 on the card, and pay it over 3 months. By paying it over time, you will get points for paying down the debt over time and points for having "accounts with 0 balance." Expect favorable results on your FICO in about 6 months. As well, you may request a credit limit increase in 6 months. Just dont miss any payments or max it out, and you should be good. Cheers

[Anonymous]

Just let it report a balance in the 1-9% range each month, then pay in full.  That way you avoid paying any interest charges.  If you spend more than that amount, pay it down to under 9% BEFORE the statement date.

[Anonymous]

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Chopbrocoli wrote:
Couple of ways you can approach it. You can either pay in full each month or you can put 100 on the card, and pay it over 3 months. By paying it over time, you will get points for paying down the debt over time and points for having "accounts with 0 balance."

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This is incorrect - only the CURRENT utilization percentage affects FICO scoring - there is NO benefit to carrying a balance. 

Save yourself the interest charges and pay in full - there is no need to PAY money to earn a high FICO score.

[Anonymous]

hey this what you need to do:

Starting Out

Start out slowly. Make small charges on your credit card and pay the balance in full each month. The goal isn’t to use your credit card to buy things you don’t have the cash for, but to begin building a good credit history and instill good credit habits.

One way you can get used to your credit card is to use it to pay a small monthly subscription or other recurring bill, something around $20 or less, and pay it each month. Let this be the only charge you make with your credit card for at least six months. This will get you in the habit ofstaying below your credit limit and paying your balance in full every month - two habits that will have a positive effect on your credit score.

Taking the next step

After you’ve gotten into the habit of paying your bill in full, you can begin using your credit card to make small purchases. Continue to keep your balance low, 30% of your credit limit or less. That means your balance should never rise above $30 on a credit card with a limit of $100. When you make a credit card purchase, put the money aside immediately so you won’t spend it before your bill comes. Then, when it’s time to pay your credit card bill, you already have payment.

As you use your credit card the right way, your creditor will likely increase your credit limit, allowing you to charge more on your card. Continue to stay within 30% of your limit even as your limit increases.

i hope this advice will help you

                                                                                                                      mandela! 

Message edited to remove links as the website linked to  has advertising to websites that would be against the TOS of these forums. - sidewinder

Message Edited by sidewinder on 11-19-2008 06:12 AM

[Anonymous]

Just pay a bill with your credit card then pay the credit card in full later that same billing cycle.