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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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[–] Steve@startrek.website 9 points 2 weeks ago (1 children)

This is a stupid game

[–] glimse@lemmy.world 5 points 2 weeks ago (1 children)

It's a stupid game but it's not stupid to play it

[–] festus@lemmy.ca 2 points 2 weeks ago* (last edited 2 weeks ago) (1 children)

It kind of is. At a certain point (i.e. a 'decent' credit score) having a higher score doesn't really matter. There's so few lenders who really only care about super-premium scores, as they mostly recognize they're throwing away good business. From when I worked for an online lender, the important things are:

Are you paying off your debts - credit score is mostly reflecting this but they can also just look at your payment history.
Can your income support your current debts plus the new one?
Can your income support the new debt, plus all the others if they were maxed out (i.e. maybe don't try to max out your credit limits).

Just pay your bills on time and avoid holding debt, and even if you could have manipulated your score slightly higher it won't matter.

[–] glimse@lemmy.world 1 points 2 weeks ago (1 children)

What debts do you have when you're young? The idea is to get a 0% interest loan to pay off

[–] festus@lemmy.ca 1 points 2 weeks ago

You use a credit card for some of your spending and you pay it off in full each month. Doing more than that is unnecessary.