building credit using credit card.

[Guinness Snout]

I was recently appoved for a credit card and I was wondering if it was best to pay the balance in full every month or carry a small balance.  I've seen conflicting answers so I just want evryone's opinion here.  I would think it would be best to pay off the balance every month and on time to avoid interest charges.

[hog.goblin]

Pay it off every month.  You don't need to carry balances to increase your credit score.

[Guinness Snout]

Thanks that's kinda what I was thinking just wanted some opinions

[HawgWild]

Pay it off every month.  You don't need to carry balances to increase your credit score.

Ditto

[kodiakisland]

Yep.  Pay it off.  Just realize how easy it is to tell yourself you will pay half this month and the rest next month.  Before you know it you have that thing maxed out.  Most people never intend to run up their cards with no way to pay them off, but it happens.

[Old Tusk]

The first month you don't pay in full, cut the card up.

[Guinness Snout]

Thanks for the advice guys.

[husker71]

yep only way to go and like others I found out the hard way finally just put back enough to pay the whole thing off and have not used it in over a year.  I got my bill today with a $39 payment   it was for their yearly fee   I called them and told them I did not want to be charged that fee anymore and they told me (after a few minutes) they could waive it   If I had a big balance that would have never happened IMHO

[hawgrunner]

The first month you don't pay in full, cut the card up.

Cut it up anyways, you don't need a credit card to build credit.

Who needs a credit score anyway if you always pay cash??

[HawgWild]

Who needs a credit score anyway if you always pay cash??

Insurance companies look at credit scores to determine rates and insurability; regardless of whether or not you've got the cash in hand. Same for landlords before offering a rental/lease agreement.

[hog.goblin]

Cut it up anyways, you don't need a credit card to build credit.

Who needs a credit score anyway if you always pay cash??

Insurance companies look at credit scores to determine rates and insurability; regardless of whether or not you've got the cash in hand. Same for landlords before offering a rental/lease agreement.

As do employers

[hawgrunner]

So to get a job and insurance to need credit card debt?

[hog.goblin]

So to get a job and insurance to need credit card debt?

Who said debt? 

[hawgrunner]

Ok, so it's just having the credit card and charging it gives you a credit score?

But there has to be other ways right??

[hog.goblin]

Ok, so it's just having the credit card and charging it gives you a credit score?

But there has to be other ways right??

Correct, having open accounts with little to no activity is great.

Good advice from seven.

[hawgrunner]

I guess then all followers of Dave Ramsey will one day be hurting big time with no credit cards.

[hog.goblin]

I guess then all followers of Dave Ramsey will one day be hurting big time with no credit cards.

Only if they need financing.  Dave misses the boat on this issue, though I think it's because he knows people struggle not using credit cards.

[hawgrunner]

Only if they need financing.  Dave misses the boat on this issue, though I think it's because he knows people struggle not using credit cards.

Yes, Dave thinks everyone will pay cash for everything even a house.