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I heard from friends and family that banks/credit agencies/whatever won’t bother adjusting your credit score if you never charge a significant amount to it. For example, say you have a credit card with a $ 2,500 credit limit. I’ve been told that you need, at the minimum, a $ 100 purchase on it or more for the bank or credit agency to take into consideration adjusting your credit score when it comes time to paying it back. Ideally, you would want to keep between $ 200 and $ 1,000 charged on the card, enough to “catch” their attention. If they see you charged $ 100 or more and pay back more than the minimum, they see this as “good” and raise your credit score. If you never charge over $ 100 or charge an amount that you can pay off all at once at the end of the month, say like gasoline and groceries, they see this as “bad” and either leave your credit score alone or maybe even reduce it.

Is any of this true?

3 Thoughts on Is it true that you must charge $100 or more to a credit card in order to raise your credit score once paid?
  1. Reply
    Silly Goose
    August 4, 2013 at 3:36 am

    Not true. Not sure where you are getting your info.
    You could charge just $ 5 a month and develop the same fantastic credit.
    Just never spend more than 30% of that limit.
    $ 2,500 limit 30% = $ 750.
    And pay your bill in full each month for top credit scores.
    Never carry balances.
    You are getting some very bad (subprime) information that is not correct.
    Someone told you that paying in full is bad for credit? Really?
    Those that pay in full each month are the ones that statistically hold those top credit scores.

  2. Reply
    August 4, 2013 at 3:38 am

    Sheesh, where or where does this crap come from???

    Credit reporting and scores don’t work that way. Your credit card updates to the credit bureau once a month. Whatever activity is reported — makes no difference whether you only charged a small amount or a big amount. The card reports your current balance and whether payment was on time.

    This info goes into the credit bureau data base. Then when someone asks for a credit report, it is generated from the data base info. Scores are calculated based on the report. There is no “adusting” your score. FICO scores (the only one that really count) are a complicated formula taking many factors into consideration — number of accounts,, type of accounts, length of history,, etc.

    You should also understand that a score is reallly only a very small part of any credit decision — more like a screening factor. Creditors look at what actually shows on your credit report. That is what you should worry about. On time payment history is the most important factor on your credit report.

  3. Reply
    Mister Know_It_All
    August 4, 2013 at 3:57 am

    I would charge $ 300.00 and if the min payment is $ 30.00 per month i would pay $ 50 for two months and $ 100 on the third month. I would repeat this pattern until it is paid off then I would not charge anything on that again until Christmas and only the $ 300 again.
    You want to build a pattern of paying over time, and you want to have very little credit used after that point. Once a payment history is there then the credit does more good to your score by not using it. If you buy grocery and gas then it appears as you are living off the credit, paying it back so you can use it again next month. That is a situation you never want to do – – it will lower your score over time.

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