Using Credit Card to Rebuild Credit

buckaroobanzai

Hi all.

So I heard using a credit card was a good way to rebuild your credit after it had been shot to pieces, is this true?

I have recently applied for a credit card now I have cleared every penny of my debt (woohoo!) and it has been accepted, of course I'm not going to go crazy and spend it all at once, but can anyone offer any advice on how to best use it to rebuild my credit card?

My plan was to use it to pay a few of my bills every month and then just have direct debit set up to take the money out of my current account to cover it. I've never had a credit card so I don't know anything about them really, if I did this would I pay extra on interest? I think it was about 30% APR.

Any help will be appreciated, thanks

grumbler

I think very few bills can be paid by a CC.
Regardless, your plan is fine. Use it for any regular spending and pay the balance in full by a DD. Don't draw cash and there will be no interest to pay if you always pay the balance in full.

RingKing

A credit card is a great way to build up your credit score since if you pay it off in full then you pay no interest.

You can use your credit card to pay your bills but beware some of them do put on charges for doing so.