Is it best to keep an american express card with a 21% apr at $500 limit?

Question

I'm using it to build up my credit. i use a certain amout and pay back more than the minimum required..Is it going to help me in the long run?

Answer 1

No.  You can do better.  First off, most Amex card charge you an annual fee and that you don't need.  Ask your bank if they offer a secure bank card.  Same as a regular credit card except they require you to deposit x amount of money into an account to hold (collateral).  If not, shop around and fine one with 10% or less (you can find them) and use that to build your credit.  Don't accept any card if you can with a rate that high.  Oh and watch out for those that wait until you have a high balance and then want to raise the interest rate for no reason (this happen to me two years ago but I had enough in saving to pay it off and cancel the card - Chase Visa card there excuse was that I was using the card too much eventhough I made all my payments ontime and usually two to three times the minimun)

Answer 2

It is good to build credit but the interest rate is horrible.  Do not charge more then you can pay back in a months time.  The interest will creep up on you if you do.

Answer 3

A $500 limit isn't going to build up much credit.

Do you REALLY want to pay $100 cash to buy FICO points?

Because that's what you're doing when you're paying interest on a card that you could pay off.