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How can I use my new credit card to maximally benefit my credit score? (lemmy.world)
submitted 1 month ago by to c/nostupidquestions@lemmy.ca
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  • for bills, is having it on autopay with the biller superior to using it manually to pay that biller? I prefer to manually manage all that as I have for years but I figure its beneficial to get that on a credit card and just make sure its paid off. I already basically use a bills bank account to do essentially this manually

  • only purchase what I already have set aside/budgeted for and can payoff before the grace period

  • anything else?

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[โ€“] -2 points 1 month ago (1 child)

Seems like you've gotten a million different answers already so here's another for the pile:

What I understand is that keeping about 30% is the sweet spot for the best credit improvement, as others have said, in the end they want to milk you so it's good to show you're willing/able.

So when you go above 30%, you always pay back more than minimum. 1.5 or 2 times what minimum would be. Ideally not all to give them more time to milk you(cumulative interest).

When you are at 30% or lower, you pay the minimum and allow them to build the most interest and try to put some purchases on it to get it back above 30%.

If you do that, it'll show continuous use, a decent roi for them, and that you are able to pay consistently and above minimum so they don't have to worry about you.

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