credit question

[ziggsta]

I have a 300 dollar credit limit on my student credit card, every month i come close to hitting this limit and when my bill is due i pay off the whole amount I have been doing this since the day i got it so i dont get charged with any interest or anything, My question is, is this really building my any credit or should i just pay half of my bill and then pay the bill at a later time with the interest?

[Jenna]

Quote:

Originally Posted by ziggsta I have a 300 dollar credit limit on my student credit card, every month i come close to hitting this limit and when my bill is due i pay off the whole amount I have been doing this since the day i got it so i dont get charged with any interest or anything, My question is, is this really building my any credit or should i just pay half of my bill and then pay the bill at a later time with the interest?

If you really want to raise your credit score do exactly what you are doing with one change: Don't charge it any where near the limit each month.

Keep the total amount you charge to less than 20% of your available credit, and then pay that in full each month. Your credit score will go up much faster that way.

[Creditnet.com]

Quote:

Originally Posted by ziggsta I have a 300 dollar credit limit on my student credit card, every month i come close to hitting this limit and when my bill is due i pay off the whole amount I have been doing this since the day i got it so i dont get charged with any interest or anything, My question is, is this really building my any credit or should i just pay half of my bill and then pay the bill at a later time with the interest?

An old credit card myth was that you'd build credit faster if every once in a while you only paid a portion of your balance and then paid the rest at a later time after incurring interest. The notion was that you were giving the credit card issuer money (interest), which would keep them happy. That is no longer true... if at all possible, don't incur any interest!

I agree with Jenna, keep doing what you're doing by paying off your monthly bill in full. But you should only be using 20-30% of your credit limit. Since your limit is so low, it doesn't hurt to call your credit card company and ask for a credit increase. Some issuers make you wait at least 6 months between requests, so if you've had your card for more than 6 months, give it a try.

[coolTechno]

Quote:

Originally Posted by Jenna If you really want to raise your credit score do exactly what you are doing with one change: Don't charge it any where near the limit each month. Keep the total amount you charge to less than 20% of your available credit, and then pay that in full each month. Your credit score will go up much faster that way.

this is perfect.. i agree

ya i agree with the jenna that if you want to raise your credit score so the way you are using is perfect but just don't charge it any where near the limit each other.