[USER]

I was approved for my first credit card. It is a student credit card. I’ve heard in order to keep good credit, I should use 30% of my credit line to maintain good credit and even below 10% for the best credit score.

I know to always pay the balance I used at the end of the month.

Is there any other tips I should know on using my credit and be frugal about how I use it?

[Tommy]

My credit utilization is only about 15% with 4 cards and I pay in full and on time every month.

I’ve had my cards for 33 years now. My FICO is

outstanding! You gotta have discipline to only use it for necessities. I have never paid any interest.

Dang it I’m only 7 points away from a perfect score.

[Emilia]

Use it only for things you absolutely need not want!

[Callie]

I only use mine for gas stations and online purchases, so I can dispute charges if necessary.

[Reba]

If you don’t need it don’t use it except buy one little item a month $20 then pay it, or spend $100 pay 3 payments.

Credit is based on consistent payments not amount spent.

[Christie]

Wait until your statement comes to pay it, then pay by the due date. Don’t charge and immediately pay, that won’t get recorded.

They only report to credit bureaus once per month with your statement balance.

[Sonja]

Use it for things you already buy, like gas or groceries or medicine. Pay the balance in full before the due date to avoid interest.

Your credit score will go up in no time. Never carry a balance.

[Deb]

If you can’t afford to pay for it then don’t put it on your card.
I even shop thrift on credit. Pay off every month.

Never get charged any %. Just pay off every month.

[Meghan]

I have a 767 score after a year with a discover card. 26, did not have a score beforehand. Just pay it off each month and as others said, use it for stuff you already buy.

Like rn they have 5% cash back on grocery stores, so I’ve been buying groceries with it and paying it off.

I also put some of my autopay bills on my credit card as I set aside the money for them (envelopes) and so I don’t always have the cash in my debit acct.

It also helps me not have to remember so many due dates for things.

[Melissa]

No matter what never miss a payment. No exceptions that will end what your trying to do and that’s build credit. even One missed payment is hard to recover from.

I took my score from 500 to 780 in 3 years. That’s how I did it

[Carol]

Never carry a balance because the interest rate is so ridiculous. Use it only when you know you can pay it.

[Stacey]

Be careful if you do have a balance. For instance a car repair. If it is due on a certain date and you pay super early but do not pay off the balance, you might have to pay the minimum cause the large payment was made prior to the statement cycle and doesn’t count towards minimum.

[Sally]

Pay the card off each week for a while. See if you are getting any points reward points

[Helen]

Set alerts on your card; I know whenever a card is used; husband and I have Discover cards; when he makes a purchase, I get an alert; I have alert 10 days before bill is due, etc.

Tons of good advice; discipline yourself now; will be a huge advantage for you in your future.

[Barbara]

Have your credit card payment scheduled as full payment each month. Have two credit cards…one card for nothing but gas…

something that you have to buy…credit is based upon how much available credit you have….

so, if you have a credit card with a maximum credit available of $1000 and use it each month to buy $200 in gas that you pay off every month that means that you have available at least $800 in credit…

that is how they figure your available good credit.

If you do this same thing with two cards owing a total of $400 you then have credit available of $1600 for the month.

You are building your credit faster using two cards than you would be with just the one card that you have for $1000 and using it for the full $400…does that help to clarify why two cards.

Now, when you apply for a credit card pick one that pays you back money each month for what you use it for….example: Costco has a Visa credit card that pays you back according to what you buy…

you get 5% for your gasoline purchases, but only 1% of most other things…you would use this card for your gas purchases only.

Always know what the percentage is that your credit card is charging and what it is paying you…

I prefer a card that pays money back instead of one that gives you miles.

I accumulate my rewards money until I am ready to use it for something special or to even pay off a month of my credit card debt when it is a tighter month. …or you could use it to put into a high yield savings program.

Always use your credit and money wisely….

[Angeline]

If it’s a good card, never close it. Outside of a mortgage, it’s the easiest way to build long term credit history which helps your credit score and as an active account, it won’t drop off your credit report.

I’ve had my longest credit card for 25 years.

[Stacey]

Make multiple payments each month, so the amount showing on the card doesn’t get high. Get into a habit of making a payment weekly not monthly.

Easier to track and manage the overall balance.

[Marian]

Yes, keep your purchase balance at 30% of your credit limit. Since you are asking questions, you got this.

Good luck.

[Brianna]

Get the credit card, set up something like your phone bill, Internet bill, car insurance ECT. on autopay on the credit card.

Then CUT IT UP, pay off the balance before the statement date.

[Betty]

I have all my regular monthly bills on credit cards, things I’d pay, anyway. Utilities, phone, gas, groceries, any subscriptions, whatever.

I get that Dave Ramsey works for some people and more power to them, I guess, but that whole “credit cards are the boogeyman” thing doesn’t work for me.

I don’t typically carry a balance and the benefits (free money for one thing as well as better consumer protections) of using cards far surpasses any potential downside which is none since I don’t typically carry a balance outside of emergencies. Besides, I like having them on hand for emergencies.

The last thing I want to have to do is figure out how to get my hands on funds in a crisis.

All the “save money for emergencies” in the world is wonderful except for the fact that crises don’t always respectfully wait until you’ve reached that savings goal or make sure to not to exceed what you have saved.

Also, I’m not trying to jump through all sorts hoops and take extra steps to qualify for housing or other things that use credit worthiness as a guide when I can just responsibly use cards.

[Debra]

Many places are now charging as much as 3% fee when a card is used. Always check if there is a fee. They don’t always inform you.

[Vanessa]

I am not sure where you heard that you should use 30% of your credit that is not true or you may have misheard.

You want to keep your usage under 30% to avoid bad credit. Using the 30% will not give you good credit.

The way to get good credit is through: on time payments, keeping utilization UNDER 30%, having a long credit history (which takes time)

[Julie]

I put everything on my credit card and pay off the balance immediately. This way I get the reward points and keep good credit.

I never exceed how much I have available to cover the cost.

Also HIGHLY suggest using a credit card over a debit card for all purchases.

I’ve used my debit card in the past and when a company has a data leak and your debit card is compromised, until the issue is resolved you cannot access your checking account.

It’s a headache.

With a credit card the charge is disputed and you can just get a new card fairly easily and continue using the same account.

[Virginia]

Get in the habit of calling to get your balance each payday and paying it off. Be aware that some student cards charge a fee each month or even each purchase.

If so, cancel it.

Good for you for getting information!

[Sarah]

I would recommend only using it for fixed amount things, like a prescription that’s always the same or netflix/hulu/disney ect since you would already have budgeted it instead of gas or groceries.

Gas and groceries can vary and very easily go over estimations

[Author]

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