tuxedocat

Having an open installment tradeline helps credit too. Ideally you want a history of both installment and revolving from different banks. On your cc you may want to carry a small balance on it instead of paying it off.

tuxedocat

I would carry a small balance on at least one card. The most important thing though is not being late. Don't carry a balance if you can't time the payment and make sure it shows up.

MidAtlantic

Why?

tuxedocat

I have no idea! It's what I read years ago when I started to pay attention to my credit.

Have a mix of credit installment and revolving at different institutions.

Take out secured loans at two different credit unions for varying lengths.

Keep a balance between 1% - 9% on one card.

Find a credit union or bank that offers a line of credit on their checking account and keep it open. This will be a long term open revolving account.

Target, Hooters, and HSN (GE Money Bank/GE Capital now) cards are good for those with no credit to apply for.

sir_eccles

No paying off in full is better for your score.

MidAtlantic

My understanding is that the credit card companies report the balance outstanding each time a statement is produced. This is used to calculate your utilization %, which is an important element in your score; best to keep it under 10%.

What you pay is not directly relevant but:

- you must make a payment on time. Late payments hit your score

- if you roll too much forward it may increase your balance next month which, in turn, increases your utilization % for that month

petitefrancaise

When you fill in the application for credit whether it's cards or loans, as a non-working or p/t worker or as someone getting alimony... it is the HOUSEHOLD income that counts - anyone paying at least part of your bills. So, you can put down your husband's/wife's income if you are a stay at home parent. Useful so that you can start to build credit in your own name.

Don't do as I did, when filling out the target application and put big fat zero in the income part.......

tuxedocat

Oh no.

Johnmore

Can you do a secured credit card in Canada? I know you can in the states, where you basically prepay money into it in order to build your credit.

Hanco

I did the same with Bank of America. Hand over $500 or more (I did 1,000) and that value us your credit line on the account until you ask for it back and they leave you with the credit facility.

In my case they refunded my 1000, left me with my credit card AND issued me with another card. The cynic in me says that gets them two annual card fees but the reality is also that I have a higher total limit and two cards (someone at Experian told me to keep both cards for now ... Until we have a mortgage sorted!)

Anyone planning a move to USA would do well to get a UK American Express card going. After one year, they will recognize your UK history in opening a US card with good credit limit

ldollard

carrying a balance is a myth, especially with the new vantage scoring system. Having any balance, does not help at all with your credit score in a positive way.

Now having more than 30% will drastically and negatively affect your score, close to the 100 points, possibly more the higher you go.

BUT

If you say paid that down, the very next month you'll regain those points so its not permanent.

The point being, if you want to use your credit for something, first pay off your cards, before applying as it can negatively affect the approval or the interest rate.

ldollard

The trick to having good>great credit is to have a mix of credit lines in the order outlined below:

Credit cards
Mortgage
Store cards
Bank accounts
Personal Loans
Car Loans

Only having one kind, does not make much of a difference, and will temporarily decrease your score when you first get it.

Also as well have having that mix, the trick with credit cards/store cards etc.. is to NEVER EVER carry a balance, that means using and paying off within the statement period, so the CC company never reports an actual balance.

This will positively affect you in three very important ways.

1) You Debt/income ratio will be kept very low, this is very important
2) Your credit utilization will be kept to 0% this is your best scenario to build and keep good credit.
3) Because you are using BUT paying off your balance in FULL each month, your CC provider will increase your credit limit, usually every 6 months to a year. This is one of your best tools. Having the limit set higher means that point 2) becomes less of a factor.

Example, if you have a $5000 limit, on all CC cards and have spent $2500 you would be at 50% utilization.

If the limit on all your cards raised your overall CC limit to $10,000 then your credit utilization will now be $25% if your expenditure is at $2500. IF your limit raises further to say $20,000 across all cards, that $2500 becomes 12.5%.

Making your spent amount less of an issue. Obviously no balance carried as I outlined above is best practice, keeping your Credit utilization as low as possible is your best bet next to it.

*CC= Credit Card

mrken30

Does it make any difference if I close an account or if the bank closes my credit card account? I did wonder how long US bank would take to close 2 accounts that I never applied for, answer, about 7 years.

Hanco

I was advised not to close a credit card I don't "need" because that is like lowering your total credit line across all your accounts. Made sense to me so I just use the card for one tank of gas a month and pay it off.

Pulaski

If it is a card you have had for a long time, it can also affect the length of time you have had credit if you close it, and so negatively impact your credit score.