Best way to build credit / credit history. (Credit Card payment questions)?

1. No it doe's not matter as long as you pay the entire balance before it's due.

2. Score wise it makes no difference so why pay interest if you don't have to?

I use 3 cards for just about everything I buy every month and always pay them off in full before the due dates. I have done this for the last 2-3 years never paid a penny in interest or fees and actually made several hundred dollars in cash back rewards while raising my credit scores over 150-points.

Sorry but I must disagree with Zack on number 5. Your total debt to total credit ratio makes up a full 30% of your credit score so the higher your total credit line is and the lower your total debt is will raise your score not lower it. Ans as long as you have a good payment history it will not count against you when you apply for loans.

Here's some advice if you are trying to build good credit:

1. Always pay your bills. If you can't pay off the full balance, at least pay the minimum payment.

2. Limit your spending so that you are able to pay off the balance in full.

3. Occasionally leave a balance. Your idea ("pay off 90% one month...") is correct. If you pay off your balance in full every month, your credit score will not be as high as if you occasionally carry a balance.

4. Don't get in a habit of not paying off your debt in full every month. Occasionally floating a balance is ok. Floating a balance every month can lead to bad spending habits.

5. Don't ask the credit card company to raise your maximum credit allowance too high. The total amount of credit available to you (from all of your cards and lines of credit) is a negative factor on your credit score. Therefore, if you have 4 cards with a $5000 limit on each of the cards, it will hurt you when you apply for a car loan, a home loan, or any other type of loan.

6. Don't have more than 3 credit cards. The more cards you have, the easier it is to fall into debt. Also, it makes it easier to keep track of your cards if you only have a few.

1. No. However, the amount that you owe on the card as a percentage of your limit does matter. Therefore, it would be very slightly better to spend less, and worse to spend (and owe) more.

2. No. It is not true. Paying 100% will not hurt your credit.

no it does not matter if you spent $2 or $500. because amount used is irrelevant, it's the fact that you're prompt with your payments. that's what helps.

2. they say if you pay in full it's not as helpful as if you break it up and pay it off in chunks. well you pay in full to avoid interest charges that accumulate rather fast. but you can do it in a fashion in which you pay in full in some months and in other months you just pay like 50% or 70% just to alternate.

as long as you're below the 30% threshold, pay regulary (even if just minimum), and if you do these 2 steps then over a period of 2-3 you'll have solid credit.

God bless

credit card debt answers

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