Credit Card User Please help?

Question

I am an 18 year old who just got my first credit card with a credit line of $700 from the bank that i just opened a checking account in. My parents and aunt suggested me to use the credit card carefully which i will. They also told me that I am only supposed to use maximum of 40% of the credit line the bank gave me?. is this true?. i am probably going to use like $200-300 MAX on this credit card and pay it off everymonth. When the bill comes every month. am i supposed to pay in full or should i just pay the minimum?. i heard paying in full helps build your credit better?. what is your opinion on this?

thanks

Answer 1

Using only 40% of the limit is a great idea.. because a debt to credit ratio effects your credit.. if you max the credit card your at 100%.. that is not good.  

Paying it off every month.. or if you charge $300 on it, pay $150 one month and $150 the next.  (But yes there will be a finance charge) whichever you can afford that month.. but always pay more than the minimum.  At least double.  You will be well on your way to establishing good credit.  

Just a comment.. it's great to hear of someone so young interesting is good credit... your parents did a good job teaching you the importance.. so many young people have no idea.

Good Luck

Answer 2

I make as big a payment as I can each month.  Like, if my bill is $200 owing, I will pay at least $50 - or more - if it is at all possible.

Remember, if you only pay the minimum that  they require, you will never get the bill paid off.  Everything (or nearly everything) will go to pay the fees and charges, leaving the principal amount almost untouched.

Answer 3

Pay the bill in full every month when you get it otherwise they will charge you fees. I actually make a payment to my card everytime I make a purchase.

Answer 4

Use any amount you want. DO NOT exceed your credit line. They will charge you a lot of money if you do.

Pay it off in full each month.

Credit cards are very useful if used properly. If you get into debt on them, they can be a nightmare.

The banking lobbies have somehow convinced congress that charging someone an interest rate of almost 30% is not ururious. It is.

If you are ever late in paying they raise your more reasonable rate up to the stratosphere.

If you follow this advice you will have a good credit rating.

Answer 5

Always paying on time is the most important factor in building your credit history.  Credit card companies don't report how much the payment is.  Only if it was paid on time.

Only charging what you can afford to pay in full every month is the smart thing to do.  You save all those interest charges and stay out of debt.

About a third of your score is based on the ratio of credit card debt to available credit limit.  Carrying balances of more than 30% of your available credit limit can hurt your credit score.  Paying balances down will give your credit score a boost.

Answer 6

keep the average balance low because company's use the available balance on your credit report also. It also effects your credit score so keep it low and I suggest paying in full every time you don't want to incur any interest or finance charges.

Answer 7

www.FICSMYCREDIT.com

Answer 8

#1 Pay in full always.  The interest rates will kill you.

The reason for the 40% rule, is to make sure there is aways room on the card in case of an emergency.  You parents and aunt are just making sure that if you start running a balance (don't) by not pay the card in full each month you will have some room in case a big expense comes up (Like a car repair)