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Jltrjt

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Credit Score Improvement
I have my first credit card in years and I've had it for about 2 months...I am paying the total amount due before the due date both to not have interest and to help my credit profile.

The limit is for only 500 at this time...if I carry a balance between 250 and 500 but pay it off in full before the due date will this help my profile or will it always look like I owe the card company?

Also...how long does it take to start to see changes in my credit score?

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The ideal is normally to not charge more than 20% (some say 30%), which would be about $150; however I have read in articles that with a small limit card such as yours going over the 20-30% mark is perfectly fine as creditors will realize that it is a low limit. What you are doing is exactly what you should. Just to clarify, by before the due date you do mean there is an amount on the statement you get each month correct? That is what you want, you want to make sure a balance is on your statement and you pay that balance off in full (some people just charge then immediately pay it off before a statement issues that reports a balance). By doing what you are doing you will show a conssitent on-time payment history, you will show a responsible use by paying it off in full, and you will not be charged any interest by paying it off. This method is what every creditor wants to see. Eventually this responsible behavior will lead the credit card company to increase your credit limit, and continue to do so as long as you keep it up. On-time payment history, good credit utilization, and increases in credit limits will all have great impacts on your score; however there really is no time frame on when it will start to change your score. Just know that how you are using your card is exactly how you are supposed and there really is nothing you can do better in that regard (I can't attest for the other items on your credit bc we don't have that information). Eventually, after you score starts going up and your credit limit gets increased you will want to start looking into opening another credit card and mimic your behavior on that one as well.

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Jltrjt

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Thanks...that is exactly what I thought but wanted to be sure.

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