Credit Card Question from poor college student?
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This is actually a great way to build good credit. Pay the bill on time and don't carry a balance-- that shows that you don't spend more than you can afford to pay off, which is exactly what everyone should do.
A high APR is fine if you never have to pay any interest!
It is always best to keep credit cards paid off in full if at all possible. I have an extremely high credit score, and have never carried a balance on my credit cards.
As long as you pay your bill, that is all that matters in calculating credit ratings, not that you pay interest. In the past, 20+ years, I have paid about $100 in interest to all my credit card issuers.
By paying off your bill every month you will get a good credit score.
It is better to use it more often and then pay the balance when due - instead of just using it occasionally - try to use it on a regular basis. Then apply for another credit card and do the same thing.
What you're doing is a great start. You're showing that you can handle credit responsibly. The next step, if you want it, is a larger loan. Maybe a used car, or a motorcycle? Whatever you do, don't fall for the trap of paying just the minimum payment. Those are set so that someone could pay for years before paying off the original loan.
This is a great way to increase your credit. Another way to increase your credit is by getting a current account open, getting a Visa Electron card (if you don't already have one) and moving at least £600 into that account for at least six months. This will then enable you to move up to a Visa Debit card. It may sound like a lot of money but I have done this and it works, if you have savings just move £600 from one account to another then back again a couple days later. They don't care where the money comes from as long as it is going in each calender month. Even if you do £100 six times over the month. I know this sounds like a long way but it will pay off in the long run as credit reference agencies prefer if you have a Visa Debit as it shows you have good credit. Hope this helps you.
Carrying a balance of less than 50% of your credit limit will help you to build credit, as long as you are paying at least you minimum monthly payment on time each month. By carrying a balance, banks are able to see on your credit report that you are able to make montly payments on time. This is assuming that the card you are using reports to the credit bureaus.
The thing you need to check for is Last Statement Balance. Thats the balance that is reported to the bureau each month. When the creditor reports a low balance your score goes up, You have to know when its reported. cause it coulda be in between your payment.
Good Luck
Continue as you were.
You're doing just fine.
you are building credit with that account. you sound like you keep it paid every month too, that's good..you go. i am a collector for aspire aspen emerge and tribute gold. the more that you pay on time the less apr that you'll have. each time that your late with a payment you're apr goes up. it does'nt matter that you don't have interest..you are building you credit score..if you've got a credit card that's the way to do it. you can also call your customer service dept and ask for a higher credit limit. they will raise your credit line. don't be late or get over limit on it and you'll do fine. GOOD LUCK TO YOU!
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