How do I build my credit score with a brand new credit card?

Question

I have just received my first credit card (I'm 18) and I have basically no credit history to this point. The card has a $300 limit and 0% APR for the rest of this year. My question is how do i raise my credit score the most during this period? Some people have told me never to use more than 30% of my credit line (which would be $90) but when I tried to find more information about that online, they always reference that number with cards that have thousands of dollars of credit.

Also, some people have told me to always pay off my debt every month to get the best credit score, while others say that it is best to carry some debt every month while making payments, especially when i have the 0% APR. Which is the best way to do it?

Thanks

Answer 1

This is a good site to understand how your FICO score is calculated.

Personally I believe in paying off my credit card every month. If I can't afford to buy it without a credit card, then I probably shouldn't buy it with one.

Answer 2

It is an urban legend that you have to carry balances and only make small payments to increase your score.

Use the card every month and pay it in full.  Don't even worry about the 30% -- that applies to carrying balances.  Just don't max out the card.  Always leave a cushion.

Answer 3

Hi,

I used "Credit Solution" to settle my debt and improve my credit score.They managed to reduce my debt up to 58%.It's legitimate. I came across this company on NBC News Special Edition.Check it out here:

http://shurl.net/5oX

Answer 4

Use it sparingly and pay it off every month.  You do NOT need to carry a balance to "build credit" - that is bunk.

Answer 5

What you have heard is true.

What you need to do is use your card for every day things, never exceed 30% of your credit limit and pay in full before the due date.

Don't worry about a balance, the lag time between the billing date and the due date will allow time for a small balance to be reported and you never have to pay interest on it.

Answer 6

Just use the credit card for things you know you can pay off within a month-use it every month if you want to but just pay off. you could buy a stick of gum with it and even that would help build credit as long as you payed it off. Just be wise with your money.