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I opened my first credit card a few weeks ago.

How much money do I need to spend with my credit card to increase my credit score?

Do I even need to spend money with it to increase my credit score?

marked as duplicate by littleadv, mhoran_psprep, John Bensin, Dilip Sarwate, JTP - Apologise to Monica Mar 29 '13 at 14:11

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  • Keep in mind it takes time to increase your score, even if you use it optimally it doesn't happen in a few weeks or even a few months. – mhoran_psprep Mar 29 '13 at 10:15
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The right answer is use it, but use it responsibly. The point of the credit report is to prove to potential creditors that you are a responsible person who pays their bills on time. If you don't use the new credit card, you can't prove that.

However, of course there is a limit. If you max out the card, you have only proven that you are irresponsible with credit. Try to stay around 50% of your max limit. More is O.K., but never go over 89%.

Always pay your bills on time. Always. Not just this new credit card, but all bills. The best way to ruin your credit is not paying your bills. Even if you are having a dispute with a company, pay the bill anyway to save your credit and then dispute the situation and try to get your money back.

Prove to creditors that they can trust you and you'll have an excellent credit score.

  • The concepts here are great. +1. I would quibble with the specific numbers. @JoeTaxpayer had some very good answers regarding utilization percentages. If I recall, he determined just under 20% to be the sweet spot. money.stackexchange.com/questions/5633/… – MrChrister Mar 29 '13 at 14:19

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