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Collegecredit13

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Young College Grad
Hello,

I have a credit card now with BofA and it gets canceled every month and renewed because they "believe" there are fraudulent charges on the card. I don't know if someone is really stealing my card information but this is really getting to be a pain when I have to repeadly change my card for my automatic payments to the gym and such. I recently just graduated college and I have had the credit card for about 2 years and I do not really use it that much. I want to start building up to a great credit score so I can cancel my other and get a new one with another company. I was told to start buying small items and then paying off the card immediatly and do that over the course of a few years but I am a very impatient person and I want to get out of this card as soon as I can. If anyone has any tips and advice on just building better credit to a kid with not a lot of money I would greatly appreciate it. Thank you

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Whoever told you to purchase small items and pay off your card each month only told you half the story. Your credit score is made up of 6 factors. One of those is called utilization. Utilization is the percentage of debt to total credit limit you have available.

Since credit card companies report you balance and payment data once per month, right after your statement closes, if you you purchase and always pay in full PRIOR to the close of the statement then the credit card company will always be reporting a zero balance.  Therefore your utilization will be zero. You want your utilization to stay between 1% and 20%.

Manage your purchases where you carry a balance each month but your utilization remains between those numbers. Just always pay down to that amount each month, or make sure that you pay off the card AFTER the statement closes so that the credit card company always reports a balance, and you always make the payments on time.

So, when he said immediately, he should have said as soon as you get your statement and be sure it is never late. Never make the purchase on a credit card and run home and pay it off that same day. Nothing is achieved by that.

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