Here is my question. I want to use a secured line of credit card to build my credit. I have been told that if i pay my card off in full every month it WILL NOT BUILD MY CREDIT.
Keep in mind I only plan on putting $150 in gas/food on the card a month. To build credit, do I pay the full amount, or leave a small balance each month (say, $5) and take the interest hit? Or Pay it off IN FULL.
Or what is the best way to build credit with a credit card???
Anonymous
Favorite Answer
What you've been told is wrong.
Getting a secured card and paying that statement's in full every months is actually a great way to build your credit.
The fact that you paid on time goes on your credit report, and if you pay your statements in full you pay no unnecessary interest.
As far as credit score goes - it doesn't matter if you payed $5 or $500. The fact that you've payed on time is what counts.
derek c
If you get a secured credit line with a bank and pay in good for a year. You will be able accordingg to the bank guideline get an un secured credit. But, make sure that the secured is reporting to the credit agency.