what is the best method to increase a good credit score to a great credit score with a credit card?
this is the first credit card ive ever owned. say i spend only 30% of the credit card limit the first week, pay it off, then spend 30 % of the limit the following week, then pay it off and repeat, will this help improve my score faster or more when they report at the end of the month?
- stingerLv 48 years agoFavorite Answer
Don't worry about paying it often - you can get your utilization fairly high and it won't matter if you pay it all off. But you do want to avoid running your credit card too high (70% or higher) at any point in time. Also, if you're going to be applying for other cards or getting a major loan, get your balances to zero and make sure it's at zero with the bureaus when your credit is pulled.
- bdancer222Lv 78 years ago
Creditors only report to the credit bureaus once a month. Your plan to charge and pay weekly will back fire on you. It is likely that no utilization will be reported to the credit bureau. You have to show utilization to build your score.
Use the card, WAIT FOR THE STATEMENT, and pay the balance in full. That will build your credit and avoid interest.
Also, don't worry about only using a certain percentage of your limit, as long as you pay the balance in full every month. It will all even out in the end.
You will need at least 24 months of consistent, on time payment history. There are no shortcuts. It takes YEARS to build good credit. Even then you will have a limited credit history (too few, too new) and will be turned down for loans, no matter how high your score.Source(s): BD
- SamLv 48 years ago
Yes it will help. When owning a credit card, it is important that you don't just make the minimum payments. For example, if you buy an item that is 150 dollars on your credit card and your bill comes, pay it off FULLY. Then the next time you charge and get the bill, pay it off 100%.
When trying to build a good credit score, it can help by showing you can make responsible payments fully. A helpful tip is that anytime you charge something, set that money aside immediately into savings or whatever, so once you get the bill, you won't have any surprises you forgot about!
- KWM Go BlueLv 48 years ago
Credit scores are based on the credit bureau information. The only information given to them by the credit card company is the credit limit and the balance on the reporting date, normally the statement date. Anything else, such as payments, carried balances, etc. never even reaches the credit bureau. Therefore they are not part of your credit score.
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- DeborahLv 44 years ago
Pay off the balances in full. There is absolutely NO advantage to carrying balances. It just cost you interest. You need to show regular utilization on the credit cards for them to continue to build your credit, but that does not mean carrying balances from one month to the next. Pay off the cards. Then use the cards for regular purchases and pay the balance in full every month. This will continue to build your credit and avoid interest. Since your cards are maxed out, paying off the balance should give you a pretty hefty boost to your score. It will also improve your debt to income ratio -- another important factor in the mortgage approval process.
- Anonymous8 years ago
A credit score is based on a 12 month activity and goes up 5 to 10% per month providing you are paying on time. To get a good score (660/749), that would take 24 months. You should always wait for the statement to verify the balance is correct.Source(s): Retired bill collector 35 years
- Go with the flowLv 78 years ago
Credit card companies hate frequent payments.
I have seen now two people on here have their accounts closed (one was a Discover) for making frequent payments.
Each time you make a payment, it costs them money in processing.
And... this does nothing for your score.
Just use your card for things you need like food or gas.
Pay in full when you get the bill in the mai. Not before.
Keep usage low.
Keep life simple.