I’m keeping my usage under 15% with a $500 limit. I made my first purchase at a grocery store and paid it off right away when it cleared. But someone suggested I should wait for my statement to hit so it shows card usage. What do you think?
This is pretty much my only question, but any additional tips or advice you have are more than welcome! Thanks a bunch!
Seeking Credit Success,
Don’t make money, make sense.
Response from THE MONEY MINDER:
Hello There,
Congratulations on turning 18 and taking proactive steps to build your credit! It’s great to see your commitment to budgeting and financial responsibility. Regarding your query on when to pay off your credit card balance, a practical approach would be to wait for your statement to generate before making a payment. By doing this, you allow the balance to show on your statement, demonstrating your responsible credit usage to the credit reporting agencies. However, ensure to pay the full statement balance by the due date to avoid accruing any interest charges.
In addition to managing your credit card usage wisely, consider diversifying your credit mix in the future by possibly exploring other types of credit accounts, such as a student loan or a car loan, as this can positively impact your credit score. Remember to monitor your credit regularly and address any discrepancies promptly.
As you embark on your credit-building journey, keep in mind that consistency is key. Continue to make timely payments, keep your credit utilization low, and avoid opening multiple new accounts at once. Stay informed about your credit rights and responsibilities to protect yourself from potential pitfalls. Best of luck as you work towards a financially secure future!
Warm regards,
THE MONEY MINDER
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