Answers to Everyday Questions : How does credit card usage affect my credit rating?

How does credit card usage affect my credit rating?

7 Responses to “How does credit card usage affect my credit rating?”

1. WelshLad said :
   June 1st, 2010 at 1:05 pm

   If you know you can pay off the full amount when the statement arrives then do it, I have done it for years and not once paid any interest on it.

   People who get into debt over them are the ones who don’t have the money to pay off the full amount and make minimum payments then interest gets added on being more than the minimum. For example I have seen one of my statements like this (not exact figures but you know I mean):

   Balance – £42.52
   Minimum payment = £11.51
   Next month’s estimated interest – £17.21

   By be paying off the full balance of £42.52, nothing gets added on next month.
2. Alvin B said :
   June 1st, 2010 at 1:17 pm

   Always pay more than the minimum. It’s best to pay off to avoid the most interest possible.
   Having 70% available looks best for credit reports.
   When credit bureaus see you max out cards, you look bad.
3. Andy said :
   June 1st, 2010 at 2:11 pm

   Using your card for everyday purchases will improve your credit rating as long as you pay even the minimum payment each month, and on time. Of course paying the minimum is one way to get into serious debt too. In your case, use it to buy whatever, and pay off the balance each month (you don’t have to put the money on the card the next day, though you can if you prefer. Just don’t be late, ever).
4. DARREN said :
   June 1st, 2010 at 2:34 pm

   As far as i am aware it will not be the usage of your card that will have any bearings on your credit report but the repayments that you make. My advice would be the following;

   1) Pay back on time (sounds obvious)
   2) If possible pay more than the minimum requirements as paying only the minimum will see you pay loads of interest and take years to repay.

   I would only use it now and then for small thing and apy off each month that should help with your credit score. You can go on to credit expert and have afree month trial to clean up your credit you will be surprised how often they make mistakes.
5. Your Sister or Friend said :
   June 1st, 2010 at 3:23 pm

   I suggest you go out and immediately charge something small. Then log onto the card’s site the next day and pay it off in full. Do this every other month. Then do this each and every time you use the card for your flights and travel and your credit score will be maximized to the fullest! Plus, and this is a very important bonus today in this crazy economy, that credit company MOST LIKELY will not willy-nilly drop you because you are generating income for them via your charges.
6. Mia Jacob said :
   June 1st, 2010 at 3:41 pm

   Having and using a credit card wisely can be beneficial to your credit rating. If you want to build your credit, get a credit card, charge a few things, and pay off the majority of the balance. Financial experts recommend keeping your account balances less than 50% of your available credit. It shows that you have the ability to pay back your debt.

   However, if you’re constantly applying for new credit cards, it can hurt your rating, especially if you’re getting turned down for them. If you’re getting turned down by creditors, it’s an indication that your credit standing just isn’t up to par, and other creditors will weigh these rejections against you.
7. Cecille Henebry said :
   November 2nd, 2011 at 11:07 pm

   Im considering foregoing the Big Sur leg of our trip in lieu of the Northern Coast all the way up to the far north redwoods and back, but hope that Im not making a big mistake, knowing that we may not make our way to California ever again.