Best way to use a CREDIT CARD

dranzer01

What is the best way to use a credit card to boost ones credit?

Im hearing conflicting ways SOME people use their credit cards...

(i only use it for emergencies....)

some use it EVERYDAY (like a bank card)


so right now I am not too sure how to use a credit card... as I have every intention on paying the total sum in full every single month...




Thanks,

forgotmyname

Use it and pay it in FULL. Seems to have worked for me. Halifax have increased my limit twice this year.

dranzer01

so i can use it willy nilly just like a bank card? doesnt matter how small the purchase is...? all that matters is paying it off IN FULL EACH MONTH, right?

concernedSaver

Set a direct debit and pay it in full.

Also, keep your spending within your credit limit: don't max out your card every month, you don't want to appear always in need of credit. Ideally, you should spend 30% of your limit.

dranzer01

im an additional card holder on amex

not too sure if i can set up a direct debit...? (id have to call them)

i logged into the amex user area yesterday to have a play about, and in red writing at the top it said

'i cannot pay off any balances with a debit card... id have to do a bank transfer'

enjoyyourshoes

Reconcile your bank account daily and treat the CC as if it were a switch etc, so reduce your running balance by the CC spend.

This allocates money within your account to pay off full amount monthly.

Set up DD to do this.

Manage your spending by reviewing you account daily.

Enterprise_1701C

I use it to pay everyday bills I do not have the "cash" for, but never for things I would not buy without the cash.

I pay it off every month.

If I could not afford something without a credit card I do not buy it.

molerat

dranzer01 wrote: »

im an additional card holder on amex

not too sure if i can set up a direct debit...? (id have to call them)

i logged into the amex user area yesterday to have a play about, and in red writing at the top it said

'i cannot pay off any balances with a debit card... id have to do a bank transfer'

So whatever you do will have no effect on your credit file as you are not the card holder. Amex should not talk to you unless you have the card holder's permission.

Anthorn

dranzer01 wrote: »

What is the best way to use a credit card to boost ones credit?

Im hearing conflicting ways SOME people use their credit cards...

(i only use it for emergencies....)

some use it EVERYDAY (like a bank card)


so right now I am not too sure how to use a credit card... as I have every intention on paying the total sum in full every single month...




Thanks,

Eye of the beholder stuff. Personally, I use a credit card for what it is intended to be, to obtain instant short-term credit. I don't pay off the full balance every month because to me interest is something to control but not to avoid. If I don't want to pay interest or cannot afford to pay interest I use my debit card for things I can afford to buy. I never use a credit card for everyday spending such as food and fuel.

Cornucopia

Anthorn wrote: »

Eye of the beholder stuff. Personally, I use a credit card for what it is intended to be, to obtain instant short-term credit. I don't pay off the full balance every month because to me interest is something to control but not to avoid. If I don't want to pay interest or cannot afford to pay interest I use my debit card for things I can afford to buy. I never use a credit card for everyday spending such as food and fuel.

The interest free period and offering a full amount DD are part of the Credit Card offer.

Paying interest you don't need to is not very MSE.


In answer to the OP:-

- You need a Card in your own name.
- You need to spend regularly and responsibly.
- You (ideally) will settle the bill in full every month.
- Many CC companies offer a full amount Direct Debit that makes this very easy.
- Direct debits are nothing to do with Debit cards (if that's what you meant).

Anthorn

Cornucopia wrote: »

The interest free period and offering a full amount DD are part of the Credit Card offer.

Paying interest you don't need to is not very MSE.


In answer to the OP:-

- You need a Card in your own name.
- You need to spend regularly and responsibly.
- You (ideally) will settle the bill in full every month.
- Many CC companies offer a full amount Direct Debit that makes this very easy.
- Direct debits are nothing to do with Debit cards (if that's what you meant).

Which credit card offer?

I don't give two hoots if it's not very MSE. I use my credit cards the way I want to use them not the way others tell me how to use them: You see, I have a brain and I can think. As I said, it's "eye of the beholder".