building credit

You can pay it off. You just have to use the card. Buy something, pay it off.

Depending on what you read, they say anything over 5-% used will hit your credit score. You should stay between 10-30% usage I guess. Which is a joke on $300 and $500 cards.

so i should just leave a balance of about 20% of my limit on the card at all times?

Showing a stream of consistent payments will help to increase your credit score. If you are looking to improve your credit you might also take out a short term loan with your bank and then pay it back over a few month's time.

Keep in mind that lenders make money if you owe them a balance so if you pay off your credit purchases you are not a rewarding a customer as someone who maintains a balance. Making a stream of consistent payments demonstrates stability.

In addition lenders when evaluating a new customer don't want to extend limits way above previous balances, so keep extending the size of your credit based purchases to help increase the amount of credit available to you.

Finally make sure to keep your home and auto finance payment on time, since lenders are aware that if you make your house payment late, you will probably pay on your pants even later.

Right.

Somewhere between 10-30% I guess is supposed to be the key. You can pay in full every month. But then buy your gas, fast food, or whatever..nickel and dime stuff so you are showing you know how to "use credit". That's what they are looking for.

If you go over the 50% mark, you will take a hit on your credit score. It will go back up once you've paid down your revolving debt. But if you are over 50% up to maxing it out, you will take a hit up to 80 points all depending. But you get that back once balance is low again.

That you use it, and can keep from going over the limit, make more than minimum payments, etc.

When you look at a REAL version of your credit report (like the free annual one) versus one that's on MyFico, or Truecredit you will see that what lenders get to see is a lot more detailed on your history then you see. Including if you are paying more than what's owed. I know I pay a little more even on my student loans because I know they are looking at it.

Apparently this help show them you are not downing in debt. I know for me, I was getting card increases within 3-4 months on cards, instead of waiting the 6 months, because I followed the 'tips'.

cool, thanks a lot

depending on how long you have had your card, you can contact customer service and ask for an increased credit limit.....

i wouldnt keep a balance on store cards, they have the highest interest %
can you apply for a visa/mastercard/Amex/discovercard???

Agreed. Store cards you want at completely zero if possible. Their rates, and little hidden fees are ridiculous most of the time.

But my advise is mainly for VISA/MC, etc.

Also, most credit card companies will give you a credit limit hike, or review, every 6 months. So if you do not get offered one every 6 months, feel free to call. Or you can get them sooner than 6 months, like what's happened for me around 3-4 months, etc.

Some automatically do it. Some you will have to call to get the annual fee waved, lower rates, higher limit, and so on. You have to play the game.

But.. be careful on this as well. If you are buying a house, and they start looking at your $5/10k limit cards, they see those as ways to bury yourself in debt if your credit's shaky. You can also refuse a credit limit increase if they jump you too high.

A broker I went through to buy a house once told me that the secret to building your score as quickly as possible is this:

Get a lower limit credit card, under $500, and max it out. When the bill comes you pay just the minimum payment. The following month you pay it off completely. And repeat. He said this will give your credit score a pretty decent hike every 2 months.

That would be correct. I've done it.

20%-40% yes. Use it make more then the minimum payment but keep the balance between those %'s

also get 1-2 more CC and do the same thing with those

great tips in here
im trying to build up my credit through mys cc's as well
thanks for the advice

just buy $100-$200 worth of stuff each month, and pay it off each month, on a credit report it will show the same as if you had constant $200 balance on that card...

Exactly.

I had 3 or 4 at the time I was rebuilding and within a number of months my score jumped roughly 75-100 points! I was also pettitioning the bureaus, so I am not saying it was ALL the CC's, but it definately helped monthly as my score climbed.

Just as predicted though, once I went over the 40/50 % my score dropped. When I paid them all back to zero, and they reported as $0.00 (it can take 30-45 days) I would get a 80 point jump.

Revolving credit makes a big impact.