Building credit with first card?

Question

I just got approved for my first credit card (yay).

Now... what do I do. I don't NEED it. I wanna bulid my credit 'cause I had none. I got a Capitol One No Hassle Visa for those with limited credit history.

Do I use it for small amounts and pay it right off? I'm such a newbie. Please help. I'm 22 and very responsible with my money.

Answer 1

Great answers, and I would add that you can also leave a balance and pay the minimum amount so that you can show a payment history, since you are responsible, pay it off in a few months, and then start the cycle again.  Just remember to pay on time, don't go over the limit, don't charge more than 30% of your credit limit etc.  You are doing good and you are well on your way to a good credit history.

Answer 2

To raise credit score

1. Always pay on time or ahead of time.

2. maintain low balances on credit cards

3.To boost your score: Don't charge anything for at least 60 days before applying for a loan

4. keep your total potential debt to earnings load low - If you have a card with a $15000 credit line, you may ask them to reduce it to something more realistic, like $5000.

5. You should have a recent history of both installment or term (Car or house loans) and revolving credit.

6.To boost your score: Don't close unused accounts when you transfer debt.

7.To boost your score: Consider opening another credit-card account or two, or taking out a car loan or small bank loan.

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Answer 3

Use it sparingly. Someone said keep it under 35%. I say under 10% is optimal. Be on time always. In a couple of years you shall have good credit!!!

Answer 4

Congratulations on obtaining your first credit card.

You should use it to make small purchases like gas, then pay off the balance when the bill is due. Keep your balance below 35% and you will be on your way to achieving a great credit score.

Never Never Never go over the credit limit, and never pay late, your credit card bills come first.

Practice these principals and your credit score will soar.

Good Luck