So, I finally caved and got a credit card to build some credit

>>18079955
You don't have to use it all in one go, you know. Just use it every now and then instead of cash or a debit card

Pay it off as soon as you spend with it. The point is to build good credit, so make small purchases you know you can pay off. Otherwise, you'll get stuck paying interest every month, and go nowhere as it climbs/stays constant.

>>18079955
You should at the very least use 30% of the limit. This will help your credit score build up.

Not using the card at all, or not being on time with the payments will cause your credit score to deteriorate.

>>18079955
Also, never make the minimal payment. Always pay more, even if it is 20 bucks more.

Making minimal payments only will take 10 years-ish to clear the debt.

Just use it as if it was a debit card. use it for all purchases, don't spend more than you have, and pay it off in full at the end of the month.

didnt you make this thread like a week ago

>>18079956
>>18079958
>>18079959
>>18079961
Thank you for all of your advice. I have a few questions just for clarification:

- should I use it for emergencies or in place of regular purchases I already spend on monthly (groceries, transportation)?
- is it better for my credit to pay what I spend right away (within the same day) or when I receive my statement?
- How long should I use it before I see positive points reflected on my credit score?

>>18079955
First of all, make sure it is a no-annual-fee card. If it isn't,cancel it, cut it up, and get another.

Use it only for convenience - to pay for something when you don't have cash handy. Do not go on a buying spree just because you have the card.

Keep track of your spending, and only use the card for a total monthly amount you can pay off in full each month.

ALWAYS pay in full each month. NEVER pay the minimum or carry a balance. NEVER.

>>18079968
1- Do every regular purchase on the card, groceries, luxuries and whatever else.

2-It doesn't matter, I have an auto-pay order on my account that pays on the last day.

3- You'll know when you recieve calls asking if you want to increase your limit. As I said previously, do not go for those unless you can spend 30% reliably.

Paying in full or making the minimal payment has no effect on the credit score. I pay in full, just to ease my mind.

>>18079975
Thank you! Those questions were what I was getting the most conflicting answers on, from both bankers and articles.

Dude I've had a credit card for a very long time (16 years?) and I've never paid a penny in charges or interest. All I do is use it for any purchases (no cash withdrawals because that carries charges) and pay it off in full at the end of each month.

It is basically a free way to get another layer of consumer and fraud protection as well as a way to put off having to pay for something until the end of the following month instead of immediately though that aspect is immaterial because I always have the money on hand if I wanted to pay cash anyway.

But I don't feel any richer or like I have access to any additional money, I think the limit on it now is 10 grand, but I rarely spend it up higher than 400 on a typical month, maybe 900 on a very expensive month.

Just use it like that. Even in a complete emergency I'd be more likely to ask my boss for an advance or friends and family than max my credit card and carry a balance because the interest is stupidly high compared to almost all other forms of financing. If I needed to borrow money I'd look at different lower interest methods.

Also because I'm old and own a house and car outright I have money in the bank for emergencies up to and exceeding being out of work for a fucking year or so, so a credit card is kind of a minor detail, but anyway that is how I use mine.

>>18079985
>pay it off in full at the end of each month
Another anon already answered me, but I'm interested in your opinion; is it better for your credit score to pay it off right away, say the very next day or at the end of the month?

>>18079989
doesnt matter. credit card companies report to the bureaus after the companies monthly billing cycle. they report what you paid, or if you didnt pay at all. thats it. whether you pay at the beginning or end doesnt matter unless the company specifically says so, which none do, hence the MONTHLY due date. so stop making threads about this

>>18079999
oops quads of half truth. they also report stuff like credit limits and such. as far as timing of the payment its either you didnt or the amount you paid

>>18079999
>>18080004
Alright, got it. Thanks!

What do people want to build credit for anyway? They'll only loan you what you can afford to repay based on income, so income against liabilities is pretty much all that matters. Obviously a record showing regular reliable repayments is better by virtue of being neutral compared to a record showing defaults, but they aren't going to loan you more than you can afford to repay just because you've an excellent credit history.

>>18080017
>but they aren't going to loan you more than you can afford to repay
kek youre right they wont. thats never happened ever