Credit Cards

[Broker]

I just got my first major credit card and was wondering something. What is the best way to pay down your bill?

Example: If I spend say $500.00 this month should I pay that all back next month or only a portion of that amount? I'm looking to pay whatever amount I need to keep building up my credit.

Thanks.

 

[NewYorkBum]

Pay the whole sum. Do NOT apply for a new card for the next 6-8 months. After that time passes, request credit line increase. Once they increase your CL apply for another CC, from different company.

 

[IAmAllanShore]

http://www.fool.com

(Only a little bit of a pun intended...)

-Allan :gl:

 

[john2k]

Credit card companies make money on transaction fees as well as interest. So they will like you just as much if you use their card on a consistent basis without maintaining a balance that they can charge you interest on. Well, maybe they would like you a little better if they could get interest from you.

Anyhow, I always say to use the card for expenses such as gas for your car and maybe a few other small things each month. Then always pay off the bill at the end of the month.

 

[IAmAllanShore]

Whether or not "credit card companies like you" does not change your credit score... aside from the obvious, "If you don't pay your bill, then they 'won't like you' and your credit score decreases."