Credit Cards Key » CreditCardsKey » Secured Credit Cards » Should I pay full credit card balance or make minimum payments?

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  #1 (permalink)
: I'm trying to build my credit. I have a secured card with 18% Apr. to build credit faster should I pay off full balance each month? Or should I make the minimum payments? What will build my credit faster?

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  #2 (permalink)
: Pay the full balance each month. Carrying a balance does nothing except cost you interest charges.
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  #3 (permalink)
: If you are trying to build credit then you need to only make the minimum payments. This shows creditors that you are reliable over time. It shows them you are capable and responsible enough to make consistent, on-time payments. This is what creditors want to see when considering handing out a loan. Paying off the full balance may save you on interest, but it will not help your credit at all. So unfortunately, interest is something you'll have to put up with until your credit is good enough to get whatever loan or mortgage you desire. Again, it takes at least 2 years of consistently positive credit history to have a great credit score, as long as there are no delinquent accounts on there as well. Showing stability, consistency, and reliability over time is the best way to improve your credit. Good luck.
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  #4 (permalink)
: As long as you make at least the minimum payment by the due date, the card willl report on time payment to the credit bureau. However, if you pay less than the full balance, you will be charged interest. There is no advantage to carrying balances and paying interest. It just costs you money.

Paying in full will not build your credit any faster. It will just save you that 18% interest. There really is NO way to build credit faster. It takes YEARS. You need at least 2 years of good payment history to see a decent score. On time payment history is the biggest factor in building your credit.
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  #5 (permalink)
: The balance should always be paid the fulling month in order to avoid interest. If you use the card monthly, in 12 months you'll have a fair score 620/659, in 24 a good score 660/749 and in 36+, excellent 750/840
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