Establishing Credit with Credit Cards?

Question

Based on my credit (or lack of) I can only qualify for a SECURED LINE OF CREDIT

Now, 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 unpaid) and take the interest hit? Or what is the best way to build credit with a credit card???

Go with the flow · Accepted Answer

How to get great credit.
Get a card and use it for things you need like food or gas.
Pay in full each month.
You never pay interest and develop amazing credit that will impress any future creditor.  
You can find these words at any site that tells you about credit.
Carrying balances, in fact, is an easy way to destroy credit.
Carrying balances thinking comes generally from older or subprime people.
Perhaps a rumor started by banks many years ago to make them rich.
Do not leave any balances on cards.
Brings absolutely no benefit.  Pay in full each month for those amazing scores.

bdancer222 · Answer

Whoever told you that paying the credit card balance in full every month won't build credit should be put on your list of people NOT to listen to.   

The best way to handle any credit card is to use the card for regular purchases, wait for the statement, and pay the balance in full every month.  That will build your good payment history and avoid interest.  There is absolutely NO advantage to carrying balances.  It just costs interest and you don't get extra points for paying interest.

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Establishing Credit with Credit Cards?

2 Answers