Which is a better way to build credit?

[jinduy]

i'm guessing paying off your balance right?

 

[brtspears2]

I have great credit by paying my balance and most importantly, paying on time everytime.

 

[RaiderJ]

Carrying a balance is dumb (unless you have to, or like throwing money away).

Paying on time - :thumbsup:
High income/debt ratio - :thumbsup:
Different types of credit - :thumbsup:

 

2 years ago i had bad credit
i immediately went out and got the first credit card that'd accept me (with a whoppin $150 credit limit)

whenever i'd put gas in the car, i'd put it on that card.
After 3 months of paying the balance instead of making payments - they increased me to 500.

I put all my groceries and gas on that card and pay it off at the end of the month.
Now i have 700+ credit (with a mortgage, home equity loan, 2 car loans)

 

[EMPshockwave82]

keeping a very small amount left over on the card actually builds credit faster than paying off balance fully every time..... pay all but 10 bucks on card and pay on time

if you dont use your card for a month then just finish off the 10 bucks or your credit will drop

 

[RaiderJ]

Originally posted by: EMPshockwave82
keeping a very small amount left over on the card actually builds credit faster than paying off balance fully every time..... pay all but 10 bucks on card and pay on time

if you dont use your card for a month then just finish off the 10 bucks or your credit will drop

:roll:

I call shens. Show me any credit building guide that says "keep a balance". It's a waste of money. Even if it were to add 50pts to your credit rating, there are still better ways to build credit.