Credit Cards: Should i pay the minimum or more?
i recently got a credit card on feb and my first bill is due on march. how much should i give minimum or more like half or almost all of the balance. for example lets say i got a credit card of 500 and i got out 250 and i want to pay 200 should i pay less, what do you suggest. i myself want to give the 200 if i do will i get anything set against me…just curious. also, awhile back i was going to register for balley total fitness and i decided to cancel it within the five day period. well i send the letter on the fifth day the last day to send it ( i remeber because everyone was sending their taxes). so, i sent it and i got the form it went thru, but recently i checked my credit and it appeared on my credit history and it gave me bad ‘points’ i guess so should i call and ask them why they did it/ and take it off my history or what should i do???
thanks for any advice. highly appreciated.
Paying off all of your debts immediately does not help you with improving your credit. Because you should show lenders that you are a good BORROWER. Your existing report shows lender that you pay your payments in full once you have money and you don’t when you are financially in trouble. Therefore you are not a good borrower to a lender (you are risky and they don’t make money out of you). So here some stuffs I suggest to do to polish improve your credit:
1) Do not spend more than 1/3 of your limit. That’s a rule. Say you have $500 credit limit. So do not spend more than $150 with your credit.
2) Do not pay your existing credit balance in full every month. Pay more than minimum payment but do not pay full. Say your minimum due is $10. I suggest you to pay like $50-$70 each month. Yes you should pay some interest but that’s a price to improve your credit.
3) There are lots of articles here which you can find useful to boost your credit.
http://www.howtoestablishgoodcredit.com/Credit_Articles/index.php
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