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KevinMen

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How to properly pay off a store credit card? Has 26%interest rates, and $250 limit, which i used
Its actually a gamestop credit card. Its my first time being approved by any kind so decided to do it. I have the money to pay it off currently, but to properly build credit how should i go about it? Do I pay it all off in one month? Or do I go about with paying it off in two months? Also, do I completely pay it off first and then use it again? Or do I use the 250, pay off some, and then use it again?

I know my questions may seem confusing, and hard to get, but any help would be great. Thank you so much

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Contrary to what many people believe, you do not need to keep a balance on a card to increase your score. What matters is the payment history. Your payment history is what is reported every month to the credit companies. So the best advice would be to pay it off every month, and use it every month. That way you avoid paying the high interest rate fro mthe card, but it will stil lbe reported to the credit companies. After a few months of good payment history, you can apply for a better card.

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Proper use to maximize credit score

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Keep your utilization below 20%, so in your case never use more than $50. Pay it off completely, rinse, and repeat. I brought my credit up this way from when I was 18 to now and I have excellent credit. 

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Pay down the balance so your utilization is around 1-3% of your credit limit.  Keep that tiny balance on the card at all times to increase your score until you can qualify for a better card.  Best of luck!

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