I finally decided to do something about my low credit rating and I%26#039;ve successfully paid off almost all my credit card debt and I%26#039;m repairing my credit rating myself (charge offs, collections, etc.). I just got a high interest rate, low balance Mastercard ($500 limit) in order to re-establish a nice pattern of credit trustworthiness. What is the best way to raise my FICO score using this card? Should I make one huge purchase then pay it all off early or should I make smaller purchases and pay it off early over time to establish a good credit pattern? My goal is doing well enough with the card that my credit limit is raised, my score goes up and I can qualify for a home loan in the future. I know some will say not to use a credit card at all but this is the only way I know how to raise my score and get back into the good graces of the Big 3 (Experian, TransUnion, Equifax). Thanks.
I%26#039;m rebuilding my credit. How should I use my new credit card?
Call to check which reporting agecny that your new card uses. It might not report to all 3.
Secondly a good idea is not to go over HALF the limit on a credit card!
It is generally best to make purchases and pay it off in full for a few reasons.
1. You skip paying the intrest because you paid in full.
2. A big part of you Fico score is paying ONTIME.
3. Another part of your FICO is debt vs. available credit.
So, if there is more credit available, because balances are @ zero ... it boosts the score.
It is impotant to remember that your FICO is made up of a percantage of things
35% = Making ONTIME payments, even if it is the MINNIUM!
Mail it in a week early!
30%= debt ( monies charged, loans..) VS. What amount of credit is actually available to you. The smaller debt and bigger credit is what you are aiming for.
15%= Length of credit history. Having accounts open years ago, actually helps sometimes. Unpaid ones could potentially help also, it is establishing how long you have been around , getting credit. Shows them you have a history. So dont go cancelling older cards... that would erase some of your history , actually damaging your score.
10% = New accounts and inquires on your credit.
Obviously more inquiries lowers your score.
10% A good mix or balance on the types of loans and credit you have. ( RE: Home , car, credit, departmant store)
I%26#039;m rebuilding my credit. How should I use my new credit card?
No ,but pick up Suze Ormans Book Young Faboluos and BROKE. I got it at target for 14 bucks and you too can sound like a credit counselor!! But she really puts things in terms that you can understand!! Report It
I%26#039;m rebuilding my credit. How should I use my new credit card?
But I would be more than willing to HELP!! :)) Report It
I%26#039;m rebuilding my credit. How should I use my new credit card?
http://biz.yahoo.com/pfg/e35score/art021...
I%26#039;m rebuilding my credit. How should I use my new credit card?
Use your credit card sparingly and pay the balance every month. I would make sure that I didn%26#039;t charge anymore than I could pay off when the bill came. My best friend has one of the highest credit scores possible and she never lets a balance get higher than $200. Wish I was more like her.
I%26#039;m rebuilding my credit. How should I use my new credit card?
petrol and necessities u wud buy neway!! just have 1 month off then pay them month after usage!
I%26#039;m rebuilding my credit. How should I use my new credit card?
Make small purchases ($20-50/month) that you can easily pay down or pay off every month. You don%26#039;t want to use more than 25-30% of your available credit every month. Maxing out the card is the worst thing you can do if you%26#039;re wanting to build credit.
You also need at least 3 revolving (credit card/line of credit) accounts. You may also want to apply for a secured credit card to have another major account reporting as well. Check where you do you banking to see if they offer them. If used properly, a secured credit card can actually be a springboard to not only help you build credit, but help you put back some money as well. An easier way to think of it is by building credit with a savings account. A deposit is placed upfront usually tied to a savings account that%26#039;s used as collateral for a credit limt in the same amount. I%26#039;m going to give you an example of how to work it to your advantage. You said that you wanted to buy a house someday, right? Well, I would think that you would want to have some kind of a down payment to go with the loan, right? Well, if you don%26#039;t have one already you would need to start saving for one. A secured credit card would be the perfect way to do it. You open a secured card, charge small (remember $20-50/month), but add to the deposit as much and as often as you can, because keep in mind, this will not only increase your credit line which will look good on your credit, but the security deposit doubles as a savings account too, so now you%26#039;re building credit and your down payment at the same time. AS long as you pay on time and keep the balance low, usually anywhere from 9-18 months the card converts to a regular one or a better card%26#039;s offered and most importantly, you get your deposit back with interest added to it. I figure if you%26#039;re going to try to save up money for a house, you might as well build credit while you%26#039;re doing it, it can do nothing but help you.
I posted a link to several credit card companies that offer secured credit cards. Also I posted another link to an interesting website that show another way to build credit by enrolling with a new credit bureau called PRBC that reports payments that don%26#039;t show on your credit like rent, cell phone, insurance, utlities, etc.
Hopefully this helps out,
Good luck!
I%26#039;m rebuilding my credit. How should I use my new credit card?
Funnel your normal spending through your credit card and pay it off in full every month. In doing so, keep your utilization rate below about 50%. To understand how FICO is calculated in detail, you can refer to the June 30th posting at http://www.uthunk.com/ .
I%26#039;m rebuilding my credit. How should I use my new credit card?
Don%26#039;t spend more than you can afford. Pay your credit card in full each month. This is how you build a good credit rating.
I%26#039;m rebuilding my credit. How should I use my new credit card?
Keep your credit card balance under 50% of your total credit line. Having a credit card exceed this level will reduce your credit score.
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