How should I use my credit card?

Question

I recently took a new job. I'm out of money so I have been using my credit card for everything like gas, cigarettes, fast food, coffee. Pretty much a lot of little things that add up to about $30 a day. What I want to know is do banks and credit card companies frown on that kind of use? I would have all of these charges paid of quickly but I'm not sure if this type of randomconsistent use is gonna lower my credit score.

Answer 1

na they dont kare wat u spend it on they just want  u to pay it back

Answer 2

How much and what your charge really makes no difference as long as you don't go over your limit and pay at least the minimum payment by the due date.   Credit cards only report if you pay on time or not.

The best way is to use the card and pay it in full every month.  Using a rewards card would be even better.  They would pay you for using their money.

Answer 3

They do look at your balances and at your payment history.  They do not look at whether it is many small charges or a few big charges.  Charging $900 a month is fine if you keep up with the payments.  Charging more than you can pay back and then underpaying or paying late will hurt your score a lot.

Answer 4

Banks love it when you use the card and pay off some of the balance.

But I've got a question: Do you have a written budget?

So that you have an idea of where your money will go before you earn it?

Answer 5

It's not what you buy, it's how well you pay that counts.

Answer 6

They don't care how you use it as long as you make the payments and  stay below your credit limit, just remember they are charging you interest on all that little stuff so that $5.00 pack of cigs and coffee just cost your $10.00 over time. What you should do is have a regular savings account in a Credit Union, that you have a certain amount deposited from you paycheck each week into savings, then use that money to fall back on for lifes little emergencies rather than the expensive credit card track, developing good saving habits will take you alot further in life.

Answer 7

It will affect your credit score if you are not making the minimum payments at the end of the month. It's actually advisable that you pay off your balance at the end of the month. http://www.badcreditfixup.com/improving-...

In my option, $30 a day on a credit card can add up quickly, so watch that balance.

Answer 8

Credit card companies love people racking up bills and struggling to repay them, so don't worry on their account, as that is how they make their money.

The poorer you get the more they prosper, and then they up your interest rate when you can't afford a bean, regardless of if it's a runner bean or a coffee bean.

If used wisely, credit card companies don't actually want your business - I have been on both extremes with their usage and their abuse having been a very good customer for 20 years (sometimes with £40 000 owing and paying it all off, yet at others having no chance what so ever).

At the end of the day interest rates defeat any benefit in having a card in my opinion, though I may be prejudiced in saying so, as I now get hounded every day by them trying to get blood out of a stone.

I was very responsible - however luck changes as do circumstances, and credit scoring is used differently by different companies.

I had a fantastic score when I was going through my divorce, despite owing huge sums and having no income.... I had a business back then.

Now I work for someone else, earn what everyone else earns, my credit score is lower than a submarine on a training exercise, and I'm drowning in debt.

My advice would be to shred your card at the earliest opportunity.

Answer 9

1. Get money

2. Pay your bill

3. Stop using your credit card