The best way to build credit ?

Question

What is better to build credit : 1. pay all my credit card bill

or 2. just pay the minimum payment ?

Answer 1

You need to get some prepaid visa card that they report it then you will establish some credit little by little.

You have some one cosign for you too.

Before you fill out any application make sure you read this , you will learn all about credit application.

http://www.slicemypayments.com/personal-...

email me if you have any questions.

Answer 2

Never just pay the minimum, the interest will get expensive over time. Pay your balance in full every month and only charge what you can pay off. This is the best way to build your credit.

Answer 3

You have asked a good question, and I intend to answer it in this order:



First: A good credit rating is a crucial part of achieving financial independence. By improving your credit rating you can save thousands of dollars in interest charges on your auto and home loan. You can also get approved for new, low interest loans and credit cards.

Second: You don’t need to carry a balance on a credit card to have a good credit score.  Paying your bill off in full is the best way to keep your finances in shape and build your credit at the same time.

Third: On the other hand, many consumers feel quite comfortable making the minimum credit card payments as suggested by their credit card companies.  While these individuals may have felt safe and secure making these minimum payments, they sadly end up with finance charges such as accrued interests which sometimes run into hundreds and thousands of dollars (depending on the credit limit and when it is paid off).

Fourth: If you can, please pay off your credit card bills each month (don’t close the account though) or, better still, carry a small balance (not exceeding 30% of your credit card limit). Doing this continuously without missing payments or incurring late fees will definitely increase your credit score significantly.

Fifth: In summary, whenever your credit card bills come, pay more than the minimum payment. (Credit card companies prefer you pay the minimum payment to paying off the bills or bringing your balance not more than 30% because they know that paying the minimum payment only will take you longer time before the debt is paid off – causing you to pay substantial interests.)  Haven’t you heard someone said, “I only collect a credit card limit of $1,000 and now the credit card company says I owe more than $2,500.” (What do you think has happened? Of course, it is as a result of continued interest charges on late fees or missed payments).

Be wise and smart – best wishes!

Answer 4

pay your credit card to where you have more than half of the spending limit available to you.

Answer 5

Pay off all your debt, if you can, the lower debt to credit ratio you have the better your score will be and you will be saving $$$ on finance charges, you should also read this article on building your credit, http://www.monitorbankrates.com/how-to-b...