Credit card question.?

Question

I am 18 (Yes I know 18+credit card=bad news)and looking to build some credit with a credit card. I was wondering if the amount of money spent each month is a factor in how your (good) credit gets built. I know that you have to pay the amount due at the end of each month to get good credit. for example if I get a bag of chips and a drink at work once a month with my credit card and then pay the balance off at the end of the month; would that be substantial enough for me to start building good credit or would I have to spend more money?

Answer 1

Paying your credit card on time regardless of the amount charged to the card will build your credit score.

Paying off the balance in full will increase your credit limit and lower your APR.

Missed payment will slash your credit score.

Paying the minimum payment will increase your APR and your minimum balance the next month.

Knowing what makes up your credit score will help you build it and protect it.

http://www.creditunions.com/home/article...

Answer 2

The most imported not how much you spend, but how much you will pay by the end of each month, if you pay in full you can expect your credit limit grow after a year. CC look also what are you spending money the most, if to buy a grocery or play casino, but regardless if you pay in full you will save om interest and get a good credit ratting. Good Luck!

Answer 3

Well for starters charging such a small amount and paying it off every month will do nothing for your report except show some creditor that you don't even have enough pocket change to buy things.

Use the card for more then just that.  Keep your charges to 20% of the total available credit, don't max out the card.  Pay at least more then the minimum due.  If you can, pay it off in full.

Remember, credit reports are a "history" of ones ability to handle credit and make timely payments.

Here are some links to the FTC to learn more

http://www.ftc.gov/bcp/edu/pubs/consumer...

Building a better credit report.

http://www.ftc.gov/gettingcredit/

What you need to know about your credit.

http://www.ftc.gov/bcp/conline/pubs/cred...

Credit and your consumer rights.

http://pueblo.gsa.gov/cic_text/money/cre...

All about FICO scoring.

Hope this answers your question.