Building your credit card
Guys if your trying to build credit , USE YOUR CREDIT CARD! But I agree you must pay off what u swipe asap so you don’t accumulate interest ! Credit cards are a tool to be used the correct way and you will be successful. Not for emergencies and don’t keep a balance on it pay it off right away everytime. If you don’t have the money in your checking account to cover the bill , DONT SWIPE YOUR CREDIT CARD!
For years I used a debit card to manage debt because I wanted to be debt free but now decided to add credit cards for Christmas, dates, emergency funding and use for vacations.
Most high earners have a life that is about a bit more than just wages, salaries. Leaving all family and friends behind just to grow your money through profitable investment is knowledge.
I use my credit cards 90% of the time without carrying a balance, enjoy purchase protection, enjoy cashback and never overspent. Using a debit card has the same spending effect than using a credit card. Using cash might change spending habits because you have to take out the cash and after that spend it. My end point, using a debit card makes no sense if you can use a credit card. And unless you’re rich you don’t need credit. Manual underwriting will give you the worst % since your % is based on your score.
I agree you shouldn’t use a credit card unless you have the cash to pay it off right away. Interest sucks!
Being responsible with your credit cards and having a great credit score is one of the key factors in achieving financial success. Cheers!
Credit cards introduce complexity and risk. You should avoid co-signing a credit card, for friends and or family. Once you co-sign your good credit is no longer in your control.
Maxing out is totally fine as long as u pay off before closing cycle! You can use credit card limit in full every month and pay your monthly dues as well as your full balance before the last business day of every month which is when your CC company reports to the credit bureaus. Mostly Due date is always the 28 of the month so pay on time for that date and never use my card till after your closing date and your score goes up like clockwork.
Basically, treat the credit card like a debit card. Only buy things you can afford and need. Don’t overspend just to get the reward points or sign up bonus. Credit score over 750+ is basically all the same, so at that point you can consider churning credit cards.
If you have multiple credit cards at different banks. Maybe you can visit each bank website and setup automatic minimum payment. Now there is no worry about missing a payment or being late on a payment. You can always put in more payment at any time to bring down the balances. Another benefit of old accounts is they have lower interest rates.
If you want credit line increase, you must demonstrate to the bank by using 80% to 90% of your credit card, otherwise why would the bank increase your line of credit if you only use a minimal amount of your credit in each month. Doesn’t matter that you have a six figure income and an 800+ FICO and all credit related teachings.
You can get as close to 100% utilization as possible and pay it off AFTER the statement arrives but before the due date for a few months and you’ll get a credit increase. That’s how credit increases work.
Isn’t it smart to max out your credit limit and pay it back a couple days later? Won’t it hurt your credit score at first but help in the long run as it would show them you can pay back your debt consistently and quickly so they would raise your credit card limit?
To make my credit history better, should I pay off the debt as soon as i use the credit card? Since I already have money, but just using the credit card to build credit score or should I pay it all back as close to the due date as possible? So that I don’t have to pay for interests. The answer is, just make sure you don’t pay for interest, but paying early versus on time should have no difference. Creditors check your payment status once a month, and it’s not always on your due date. They check if you actually paid it.
