Anonymous wrote:

Anonymous wrote:You MUST always pay it off in full, unless you want to have real trouble come your way. We no longer use credit cards but if you are determined to, just charge one or two expenses each month - something predictable like the cable bill or some other regular, reoccurring expense, so you can budget for it. Then pay it off in full every month without being late.

Use cash or debit cards for things like groceries, eating out, entertainment, etc. so you can keep a budget and stick to it. With credit cards, it's just way too easy to spend more than you intended.

FWIW, I think this is a dangerous road. Be very careful. So many people have charged their way into serious debt, and all they have to show for it is a history of dinners out, movies, and things they wish they hadn't bought. Be wary. Good luck OP.

Op here. I appreciate this advice very much. As of now, I only use it to fill up the gas tank about twice a month and pay it off in full. May I ask you though, what do you do to build your credit? Mind you, I have nothing in my name. Not a car, not a house, etc.

Anonymous wrote:If your limit is $500, the best way to start to establish an excellent credit profile is to (1) use your card every month, (2) ONLY charge 25% of your total available limit every month max or less, AND (3) pay your card off in full, on time, every month.

(1) is necessary for your credit company to report to the credit reporting agencies monthly/as often as possible. (2) is necessary for all creditors to see that you are responsible with your credit and don't charge (or overcharge) to the hilt as soon as you are afforded the opportunity. (3) is necessary to avoid ruining your credit rating and, equally importantly, to avoid financially idiotic mistakes like paying late fees and paying credit card-level interest rates on monthly balances you carry forward.

Never think of your credit card as a loan. Never charge more than you have. Set up automatic pay from your checking account so you ensure you always pay on time. After you do that, STILL check your account online and check your monthly statements to make sure there are no incorrect charges/fees, and that your payments are being credited to your account.

If you charge responsibly and stay with your means, after several months to maybe a year, you should be offered the opportunity to increase your credit limit, which will in turn positively affect your rating. If they don't offer it, you can call and ask them if you qualify for a limit increase without running a consumer-requested credit check. But if you do get an increase, always continue to follow (1)-(3) above!!

Last, now that you have this card, focus on building a very positive credit history using it responsibly and savvily. Do not go out and continue to apply for credit cards or loans for as long as possible. The more credit you apply for, the more often creditors will have to pull and check your credit rating, and these consumer-requested credit applications ding your credit score, so you may undo some of the good you'll be doing by using the credit you do have responsibly.

Anonymous wrote:You MUST always pay it off in full, unless you want to have real trouble come your way. We no longer use credit cards but if you are determined to, just charge one or two expenses each month - something predictable like the cable bill or some other regular, reoccurring expense, so you can budget for it. Then pay it off in full every month without being late.

Use cash or debit cards for things like groceries, eating out, entertainment, etc. so you can keep a budget and stick to it. With credit cards, it's just way too easy to spend more than you intended.

FWIW, I think this is a dangerous road. Be very careful. So many people have charged their way into serious debt, and all they have to show for it is a history of dinners out, movies, and things they wish they hadn't bought. Be wary. Good luck OP.

Anonymous wrote:It shouldn't matter what you spend it on. If I were you, I would just use it a little for the first several months and only up to the amount you could pay off in full. The best credit histories are those with on-time payments and not going up to the full amount available. Please do not start running a balance so that you have to pay interest!!! Good luck!