I have no credit, and just got my first credit card with a $600 limit, what's the best way to build credit?

My partner and I had a conversation with Chase bank who have a credit card option to sign up for. Basically, what they say is that your credit will increase so long as your minimum balance is paid EVERY MONTH and ON TIME. The best way that you can use your credit card is by spending only a little bit, say for groceries every month. Then when you get the bill, pay back the total balance, BEFORE the interest is applied to what you borrowed. Your credit still goes up, you don't have to pay to borrow the money you did, and your finances will be much easier to manage. After that, check your credit score every three to five months. There are three companies that handle credit scores, and by law, each of those companies is required to give you ONE FREE credit report per year. That means you can check your score three times a year for free. Do research on Google to figure out what the three companies are. On another note, pay attention to the fees and percentages of your credit card. Credit card interest can sometimes be 20% to 30% depending on the company. Also, some companies like to charge you yearly fees just for being a member. Do yourself a favor, and avoid yearly fees. Never pay JUST the minimum balance as the minimum is designed to keep you paying for years to come. If you spend just $200 and only pay back the minimum, you could be paying for 2 to 3 years on something that broke a year and a half in. Also, try only to have ONE credit card payment per month. Even trying to pay the minimum on 2 or 3 credit cards can take $50-75 out of your precious paycheck, which is very scary considering many, including my partner and I, live basically paycheck to paycheck and that $50-75 made things very stressful. Luckily, we got all the finances in order, and now live much more comfortably within our means.

Your credit report shows how much you currently owe, your current credit limit, the max you ever owed, and how many times you paid late (broken down by length, so paying 90 days late twice will show up differently than paying 150 days late twice).

The largest part of your credit score is whether you pay on time. (Owing nothing and paying nothing counts as on time.)

A smaller part is your current utilization ratio. If your limit is $600 and you owe $500, that is worse than if you owe $200. It doesn't matter how much you owed in the past for this measurement.

An even smaller part of the score is the maximum you have ever owed. If your limit is $600 and the maximum you ever owed was $500, that will make your score very slightly better than if your limit is $600 and the maximum you ever owed was $100.

Please do not use that last measure as an excuse to charge up your card. It is a tiny, tiny fraction of your score.

Credit card companies charge huge interest charges on outstanding balances. So your best method of using a credit card is only charge what you can pay in full, by the billing date, each month. Don't leave even a small balance as the CC company will ring up so much interest it will give you a headache.

As you show you can pay your bill fully, over time, your credit rating goes up as it shows you are responsible and can manage your money well.

Be sure to make at least your minimum monthly payment. Paying it off quickly may be nice for you but bad with the CC company. Make those payments ON TIME.that is the important thing and over time you will show them that you are a reliable risk. I never wanted to max my card unless it was an emergency but spend only what I needed. I liked having that available credit when needed. good luck and be careful.

This site is for comparing rates for you and free http://www.creditvault.net/

RE:I have no credit, and just got my first credit card with a $600 limit, what's the best way to build credit?

Pay your dental bill or pay your doctor bill with that cardand then when your paycheck comes in pay off the credit card statement in full.

Compare rates free

Buy everything with it, but pay it off ONCE the bill comes

Try http://goo.gl/OXS1Z4