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How can I use my new credit card to maximally benefit my credit score? (lemmy.world)

submitted 2 weeks ago* (last edited 2 weeks ago) by cheese_greater@lemmy.world 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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[–] adespoton@lemmy.ca 2 points 2 weeks ago (1 children)

Treat your card as if it were a checkbook.

Hook it up to a bank account that covers twice the card’s credit limit. You can pay it off once a month, or pay it off whenever you approach the limit; which method you use depends on your limit and spending habits.

Autopayments are good — the reason you hook it up to an account with a relatively low balance is so you have a throttle on your spending AND so if the anti-fraud protections miss something, you have time to dispute the charges before they get paid off.

Other things to note: use chip and pin when possible; with chip and pin, any disputes default to being in your favor, with the merchants having to prove why that shouldn’t be the case. If you use tap, it’s all on you to prove why it wasn’t you who made the charge.

Using this method, paying all my utilities etc. through my credit card, I got my credit rating above 80 in a few years.

[–] cheese_greater@lemmy.world 1 points 2 weeks ago* (last edited 2 weeks ago)

treat it like a checkbook

Will/already do :P