I just got my first credit card, and was wondering what the best way was of paying off my first bill? I've heard to pay double the minimum payment for 5 months, then after that start paying off the whole balance. Is this better than paying the balance off completely? and if so, why?|||You should definitely pay off the balance completely every month.
The best way to use a credit card is for it to be a good rewards card, funnel most of your normal spending through it (without max'ing it out), and always pay it off in full every month. That way you'll build your credit quickly, avoid interest, and earn great rewards.
Note that if you use this strategy, then the APR (annual percentage rate) doesn't matter much because you'll never be paying interest. Instead, what matters most with this strategy is the rewards structure of the card.
If you're a college student, then you can get a good student rewards card such as the Citi mtvU card, Citi Driver's Edge for Students, or a Capital One Student Visa.
If you're not a college student and have limited/no credit, you could look at some of the Capital One cards for people with no/limited credit. Also, Orchard Bank is an option.
You can use this rewards calculator to see which rewards card will pay you the most for your normal spending profile:
http://www.creditcardtuneup.com/|||No clue. I just pay the minimum always ontime. This way it shows in good standing and doesn't take a chunk out of my wallet all at one time.|||Pay your bills|||first don't spend over 25 to 30% of your credit limit. And you don't always have to pay off your debts right off the bat. But definatley pay double or better yet a little more of the minimum. The finance charges are a *****.|||Maintaining a good standing is all about paying regularly and on time. You can pay it off in fewer than 5 payments (save yourself some interest charges) but be sure to use the card once in a while and pay it on time! It gives you a positive credit history... a track record of using your credit line and paying faithfully.|||I've always paid off the entire balance due each month. That way, no interest is payed. I can't see how carrying a balance would do you any good as far as your credit score is concerned.|||In order to build good credit you will need to have at least 6 months payment history. You will need to use no more than 25 percent of your available credit. All payments need to be recieved on time..Don't pay off the balance in full for at least a year...pay 1.5 times the minimum payment. At the end of your 6 months request a credit limit increase...|||I have credit score 740 now..i think it is good credit score..what i do is that i always pay all my balance on time..i don't care abt minimum...it saves my interest too...i think it is good to use credit card this way because i had my first credit card 2 years ago and it was secured credit card but now i have many offers from all major credit card companies.|||If at all possible, always pay the bill in full each month. Don't go into debt on credit cards, the classic trap. If you do, you will be throwing away lots of money on extremely high interest.
If you pay your entire bill on time every month, your credit will be just fine. Although the credit card company may like you to keep a balance so that they can make exorbitant interest income from you, they're also okay with you paying off the bill in full, because they still make money from the merchants you buy from. So as long as you use the card, even if you pay in full every month, they still make plenty of money.
Don't worry too much about reaching the limit (as long as you can pay it off each month). If you keep paying on time, the credit card company will almost always keep increasing your limit whenever you get in danger of reaching it. They want you to charge as much as possible.|||Pay your bills on time and keep the cards open for a long period of time. Just keep in good standings with two or three companies. Don't open to many credit cards I think that's most people down falls. Never charge more than you can afford. Oh, I know it's easier said than done. The best advice is avoid late payment fee's and over limit fee's. Good luck to you!|||1. Always pay on time or ahead of time.
2. maintain low balances on credit cards
3.To boost your score: Don't charge anything for at least 60 days before applying for a loan
4. keep your total potential debt to earnings load low - If you have a card with a $15000 credit line, you may ask them to reduce it to something more realistic, like $5000.
5. You should have a recent history of both installment or term (Car or house loans) and revolving credit.
6.To boost your score: Don't close unused accounts when you transfer debt.
7.To boost your score: Consider opening another credit-card account or two, or taking out a car loan or small bank loan.
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