I recently got my first credit card (although I have had a debit card for a long time). It has a $1200 limit. In order to maximize my credit building, which of the following is the best method (or, feel free to offer an alternative method)?
Pay my rent each month with the credit card. My rent is right around $1030 including utilities and everything. If I did this, I wouldn't use my credit card for anything else.
Pay for all my random monthly purchases (restaurants, groceries, gifts, etc.). This would likely hover around $500, although I'm really not sure because I've never tracked it THAT closely. If I did this, I obviously would have to pay my rent via check or with my debit card instead.
If neither of these is the optimal method to build credit/encourage Discover to raise my credit limit, let me know! However, I'm "guessing" one of these methods is pretty close to being optimal...
If it makes a difference, I have the "Discover It" card. My #1 priority is building credit, but a close 2nd is being able to increase my credit limit.
Edit: Does total number of purchases make any difference, or just the bottom line? In other words... is 1 purchase of $300 with my credit card equivalent to 50 $6 purchases when it comes to building credit?