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dustinmcmanigle

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Am I using my credit card correctly to build my credit score?
I recently acquired my first credit card with a $300 limit. As soon as it arrived in the mail I made a $1.50 purchase. As soon as the purchase posted to my account I paid the balance in full. I plan on doing this once a month. Is this the correct method to build your credit score or am I paying it off to quickly?

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You need to wait and let the balance be reported to the credit bureaus so that you are showing activity. Then pay it off right after that. I would also consider running a little more money through it at different times during the month and then paying it off right away. This will help show the lender that you are responsible and make them more willing to give credit line increases down the road. You will have to watch to see when the card company reports to the credit bureaus each month and make sure that you are utilizing between one and nine percent of the credit line at that time. I am advising running some money through the account each month only if you are not charged interest from the time of purchase. I advise you to keep reading all that you can on this and other credit topics and I congratulate you on making progress toward a better future with credit.

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