- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
True or False?? A decent way to bump up your credit score.....
Posted on 3/18/13 at 11:09 pm
Posted on 3/18/13 at 11:09 pm
Buy a credit card and fill up your tank of gas once per month. Obviously pay off the $60 immediately, but make that your only purchase every month. Do this for a year or two.
Keep in mind I have never owned a credit card in my life (other than a Dillard's or Macy's card for a day or two).
Keep in mind I have never owned a credit card in my life (other than a Dillard's or Macy's card for a day or two).
Posted on 3/18/13 at 11:11 pm to UFownstSECsince1950
Getting any credit card and paying it off monthly will help your credit.
Posted on 3/18/13 at 11:11 pm to UFownstSECsince1950
True.... But why not just put everything you purchase on your card and pay it off each month
Posted on 3/18/13 at 11:15 pm to BACONisMEATcandy
That is my question. I was told to not do that. Supposedly you can boost your credit much higher & much faster by only making one small purchase every month.
Figured someone on here would know the reasoning behind this, or whether that's complete bullshite or not.
Figured someone on here would know the reasoning behind this, or whether that's complete bullshite or not.
Posted on 3/18/13 at 11:28 pm to UFownstSECsince1950
I won't really make a difference as long as your balance is less than 30% (I think?) of your credit limit.
Posted on 3/18/13 at 11:31 pm to LSUtoOmaha
Ok, maybe that's the key (less than 30%)
Grazie
Eta: another dumb question.....but does it matter what type of credit card I get for the sole intent of building up some credit? I don't want/need anything for making regular purchases or even sudden/unexpected/massive purchases. So I'm not really worried about interest rates or late fees. Will any old regular credit card from my local bank do?
Grazie
Eta: another dumb question.....but does it matter what type of credit card I get for the sole intent of building up some credit? I don't want/need anything for making regular purchases or even sudden/unexpected/massive purchases. So I'm not really worried about interest rates or late fees. Will any old regular credit card from my local bank do?
This post was edited on 3/18/13 at 11:35 pm
Posted on 3/19/13 at 12:00 am to I Love Bama
Yes to the first question or yes to the last question?
Posted on 3/19/13 at 12:02 am to UFownstSECsince1950
Any card will do
Posted on 3/19/13 at 12:11 am to I Love Bama
10-4, appreciate it bubba
Posted on 3/19/13 at 12:29 am to UFownstSECsince1950
Might as well get something with good rewards... They will pay you to use the card
Posted on 3/19/13 at 6:18 am to LSUtoOmaha
quote:
I won't really make a difference as long as your balance is less than 30% (I think?) of your credit limit.
Correct, but even if you go over 30% it won't have any long-term impact. You get dinged a small amount when your revolving balance > some percentage of your total amount, but if you are able to pay it off in full anyway whenever you need to then you might as well use the card. Eventually either your limit will get raised enough for it not to matter anymore.
Posted on 3/19/13 at 6:29 am to UFownstSECsince1950
quote:
Ok, maybe that's the key (less than 30%)
To maximize your score at a point in time, have less than 10% of your utilization report. It doesn't matter whether you spend $10 or $1,000 per month, as long as you pay it down before the statement date, the credit bureaus won't know what you've spent. The credit card company only reports your balance every month and utilization percent is a MAJOR factor in determining your FICO score. So, as Bacon said, just get a rewards card and use it like a debit card then pay it off before the balance posts on your statement every month.
Also, if you're looking to boost your score, look into a "credit builder loan" through a local credit union. You don't get the money upfront but rather put a certain amount of money in an account every month and you get to keep the money at the end of the term.
Posted on 3/19/13 at 8:07 am to UFownstSECsince1950
Paying off your CC each month has nothing to do with your CRA Score aside from utilization. What it does do is keep the card active and in favor with the bank issuing the card. If you had a card and didnt use it for years they may close it which can hurt your debt to credit ratio. Also paying off your card monthly doesnt always result in a 0 balance on your report. It depends on when the bank reports. If you have a 500 limt credit card and its your only one and you spend 150 on it a month but pay it off on the 20th and your bank reports on the 19th then your credit score will take a hit for being at 30% even though you pay it off monthly.
There is a lot of info online about when banks report as many people watch this so google your bank. Some move around like HSBC and Capital One for example its best to pay a few days before your due date while Chase reports the day of.
Bottom line its a good idea to know the day of the month that the CC company reports. Otherwise you can do harm while you think you are doing a good thing.
There is a lot of info online about when banks report as many people watch this so google your bank. Some move around like HSBC and Capital One for example its best to pay a few days before your due date while Chase reports the day of.
Bottom line its a good idea to know the day of the month that the CC company reports. Otherwise you can do harm while you think you are doing a good thing.
Posted on 3/19/13 at 11:16 am to Catman88
quote:
True.... But why not just put everything you purchase on your card and pay it off each month
Don't know if he has a fixed income. If he is in college, then yeah, I'd definitely recommend this.
I know I didn't have a steady CF in college.
Posted on 3/19/13 at 12:33 pm to BACONisMEATcandy
quote:
True.... But why not just put everything you purchase on your card and pay it off each month
This depends on your credit limit I think. Whenever your balance is close to your limit, you get dinged for that I'm pretty sure. You want to have your balance regularly at 30% or below the limit. Thats at least what I have gathered from these boards and from credit people.
Posted on 3/19/13 at 12:44 pm to AUtigerNOLA
You can go up to 99% every month and never get hit so long as you know the day that your bank reports and pay it off before then.
Posted on 3/19/13 at 4:56 pm to JonTheTigerFan
quote:
To maximize your score at a point in time, have less than 10% of your utilization report. It doesn't matter whether you spend $10 or $1,000 per month, as long as you pay it down before the statement date, the credit bureaus won't know what you've spent. The credit card company only reports your balance every month and utilization percent is a MAJOR factor in determining your FICO score. So, as Bacon said, just get a rewards card and use it like a debit card then pay it off before the balance posts on your statement every month.
One little thing - I was in a class recently about credit scores and we learned that the reporting date from your credit card to the credit agencies is NOT necessarily your statement date...so for instance if you ran it to the limit every month but paid it off you might look to the credit agency as over-leveraged even though you paid it off on time. Just an FYI
Posted on 3/19/13 at 5:24 pm to Shankopotomus
That's correct. I don't really worry about it unless I'm trying to get new credit. Then I pay them off well before the due date just to make sure they report a zero balance to maximize my score. Well, I actually let one report a zero balance and the other less than 10%. That seems to be where my FICO score is highest. I have FICO ScoreWatch and I've tracked my score for over a year now.
Popular
Back to top
Follow TigerDroppings for LSU Football News