Just got a credit card with a 250$ limit. Would it be good or bad for my credit if I maxed it out and pay it off multiple times in a month? or would it be better to max it out once at pay it off when I get the bill at the end of the month?
Also does my limit automatically increase or do I have to ask my credit union and get approved?
>>2061864
bad
You should only use 10% or less of your credit line ($25 or less on a $250 card) each month so you don't look broke as fuck. That's how you get good credit.
"30% of your credit score is heavily influenced by your credit utilization ratio and you should never use more than 30% of the card."
I recommend 10-20% max.
>>2061859
bad
you will be considered financially risky and your credit will lower, regardless of your siq crypto gainz anon
i have a $9k limit but only use it on dining out (cause im not gonna refund a meal and end up having a positive balance on my account)
if you only have $250 limit, your best path now is to slowly build up your credit and save as much money as you can, use 10% minimum for investments each month.
even 10% of minimum wage every month will add up. imagine how much someone would have gained if they had stashed away a few bucks into BTC every month for several years
think long game
good luck to you my friend
OP look up credit utilization. Anything under 30% when your monthly statement comes around is considered good. I have been building my credit this way for a long time and am approaching 900 (probably not there yet though because I haven't made fuck huge credit decisions yet).
Also, increasing your limit, some cards do it automatically but others do it by request. I'd wait a month or two before manually requesting one. If you wait half a year it'll probably go up automatically if you're using it well.
I just pay off my credit immediately usually the same day
>>2061859
Use it to buy McDonalds or whatever is less than $5
Pay it off a few days later
Do the same next month
Repeat for 6 months then phone and ask for a credit increase because $250 is unusable
6 months later get Discover or Slate so you can monitor your own credit score
>>2062602
Pretty sure 850 is max.
>>2063856
depends on source in usa, max ranges from 840 to 990
>>2062121
I nearly max mine out every month then pay it off, why is my score 769?
Banker here, you want to keep your credit borrowed at 33% or so for a good credit score. Constantly paying it off right away doesn't help much at all.
>>2064396
cause you pay it off dumbass. what he meant is if you let a statement generate reporting above 10% utilization it dings your credit score
>>2062804
>Pay it off a few days later
It's better to wait until the end of the cycle, actually. Don't carry a balance over to the next month, but dont pay every purchase off immediately either.
>>2062804
Paying off your card every few days will do nothing for your score. Only the balance at the end of the reporting period is reported to the credit agencies. It is best to use the card for 10-15% of its balance and wait for the statement to process then pay it in full so that you don't get charged any interest and get the benefit to your score. Using your card frequently will make it more likely to increase the line of credit but only if you are never late on payments. Don't expect anything before 6 months of opening the account but do not request before 12 if they don't do it on their own.