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I have no open lines of credit and a credit score of 580 if i open up a secured cc with a $300 limit and only spend $30 per month on it , what is the best way to pay on it to raise my score, should it be paid in full every month or should i leave a balance
I would say pay it in full every month. I do believe that the lower your balances on your lines of credit the higher your credit score will be.
I would also make sure to ask the lender you plan on using if they report to all three of the credit bureaus. Most big lenders do but some smaller ones like credit unions and such may only report to one of them. If your trying to build your credit scores than you definately want it showing on all of your credit reports. Just a thought..
Best of Luck!
The two most important factors that contribute in your credit score are the "amounts owed" factor and the "credit history" factor. Credit history contributes 35% in your FICO score while the "amounts owed" factor contributes about 30% in your score. So if you make regular payments with your card and repay it back within the due date, not only your credit history but also your amounts owed factor improves. So I think that if you make the entire payment within the due date, you credit score will improve much faster.
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Whatever debt you have out there (loans, etc) I would keep paying on, as well. The LESS debt you have, the MORE your Credit Score WILL go up. I have a car loan, school loan, etc. I'm very surprised how my Credit score DID raise over the last year. ..just by making on-time payments and bringing my debt down.