Hey @FIRENATHANIELHACKETT you’re a banker right? Quick credit question lol. What I’m specifically asking is hard to word correctly and find on Google.
I jus got my first credit card. Yea I know I’m late lol but I jus always paid for shit up front wit debit and called it a day, shoulda been building credit tho regardless. Anyways, is it any faster or more effective at building credit if I essentially use it as a debit card and pay it off immediately? For instance, you obviously have a billing date every month and they’ll automatically charge you on that date every month, so as long as it’s paid off by at least that date, you don’t get interest and it’s positive on your credit score. But you can also do manual payments whenever you want, before your billing date. So if I buy something, then immediately pay off the entire credit line that same day instead of keeping it as a balance until billing day, is that even more positive on my credit score, or about the same as simply paying it on the scheduled day? This also allows me to charge more items to it obviously. If I max out the credit line, then I need to wait until billing day to use it again a month later. If I pay it off right away, I could make 10 more purchases and pay all those off too in that same 1 month span. Idk if they look at the volume as well.
They don't look at volume so you don't have to worry about that. BUT if you pay off 100% of what you spend on the card it sometimes looks like you didn't use it at all, credit wise at least. So I typically guide people to leave a $10 balance on the card at the end of the month. That way on your credit report it shows you are deliberately using a small amount of the card, rather than the $0 balance that you could have just chucked the card into the freezer and forgot about it. And a balance of $10 is gonna be at most like 30 cents in interest a month if that.
Play that game for a few months and then open a second card and do the same thing, and then a couple months later with a third card and you'll be money. Easy credit score in the mid to high 700s.
Quickest way to build credit is to make your payments every month while keeping your balance at about 33% of your total limit.
No, 30% is the maximum limit before it starts to be considered a detriment to your credit. You can do the same thing but keep the balance at 10%, 5%,1% etc.
yeah. never pay your balance to 0. always leave a small portion of it on the card.
And yeah, whatever you do, just keep it below the 30 percent.
If you do that you should see your credit rise by about 100-150 points over the next 12 months.
The problem is once you get a card, everyone will offer you credit. Don't get more than 2-3 cards. Anything more is too much to manage to build credit.
Just my advice from the last 5 years of building lol.
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they aren't going to have to kill me to get me to stop talking though. just a quick pay off.
Delicious
I jus got my first credit card. Yea I know I’m late lol but I jus always paid for shit up front wit debit and called it a day, shoulda been building credit tho regardless. Anyways, is it any faster or more effective at building credit if I essentially use it as a debit card and pay it off immediately? For instance, you obviously have a billing date every month and they’ll automatically charge you on that date every month, so as long as it’s paid off by at least that date, you don’t get interest and it’s positive on your credit score. But you can also do manual payments whenever you want, before your billing date. So if I buy something, then immediately pay off the entire credit line that same day instead of keeping it as a balance until billing day, is that even more positive on my credit score, or about the same as simply paying it on the scheduled day? This also allows me to charge more items to it obviously. If I max out the credit line, then I need to wait until billing day to use it again a month later. If I pay it off right away, I could make 10 more purchases and pay all those off too in that same 1 month span. Idk if they look at the volume as well.
They don't look at volume so you don't have to worry about that. BUT if you pay off 100% of what you spend on the card it sometimes looks like you didn't use it at all, credit wise at least. So I typically guide people to leave a $10 balance on the card at the end of the month. That way on your credit report it shows you are deliberately using a small amount of the card, rather than the $0 balance that you could have just chucked the card into the freezer and forgot about it. And a balance of $10 is gonna be at most like 30 cents in interest a month if that.
Play that game for a few months and then open a second card and do the same thing, and then a couple months later with a third card and you'll be money. Easy credit score in the mid to high 700s.
And yeah, whatever you do, just keep it below the 30 percent.
If you do that you should see your credit rise by about 100-150 points over the next 12 months.
The problem is once you get a card, everyone will offer you credit. Don't get more than 2-3 cards. Anything more is too much to manage to build credit.
Just my advice from the last 5 years of building lol.
You need to carry a small balance so it all gets reported, but over 30% most creditors will penalize you for.