- Platinum Member
- Posts: 88
- Joined: Thu Aug 02, 2012 1:18 am
- Location: Nebraska
The best way to explain this, when you get your notice that your statement is ready, that's the amount that gets reported. So if you charge $20 and when you get your bill there's only the $20 charge on it, that's the balance that's reported. There is no real advantage to carrying a balance and paying interest because all they really care about is how much you owe each month. I'd just charge something small that you need anyhow each month and pay it off before the due date and avoid the interest. You don't get really great interest rates on cards for average and below credit. Also making payments on $200 over several months might make some lenders a bit nervous about giving you more credit, because if you struggle to pay back $200, how on earth would you ever pay back $2,000?
Also, unless you have a rewards card, it doesn't make much sense to "charge" everything. Now as far as credit scores go, just putting a small charge on the card say every 3 months to keep the account active and in good standing does just a good a 20 charges per month. Since you are building credit the rule is never ever buy something you don't need just for the sake of charging something. You might consider something like pay the cell phone bill or cable bill with the credit card, then put the card away until next month. Just be sure to keep the cash in your pocket and don't spend it until it's time to pay the credit card bill.
Also, if you can't pay your bill in full, there's no reason to use the card again until it has a $0 balance. There is a trick to getting more out of a lower limit by charging up to your credit limit then paying it off right away, you can pay your bill 4 to 5 times a month if you want. The problem is, this becomes a dangerous game and if you don't get your payment in right away, you might run into your closing date and a 98% utilisation gets reported.
My suggestion is to only put a small charge on each card, say $10 or less, don't charge anything else, let the bill come then pay it before the due date, repeat next month. Do this for 3 or 4 months, then check your credit score.