The Golden Credit Card Strategy! Are You Only Able to Pay the Minimum Balance? If so, You Must Read This!
What you must do is to take and put that 5% to 20% or put a very small stipend on that credit card, $100, $200, make the minimum payment each month, whatever it might be, $20 a month, plus $1 more. $1 more than the minimum payment will have more capacity to drive up the credit score when making payments on time, in a given window of time!!
The reason that you pay $1 more than what the minimum payment is, is because the minimum payment is reported to the credit bureaus. And when you pay $1 more, it shows that you’re paying more.
Now, if I paid $10 more, does that mean it’s 10 times better? No, it isn’t. That’s the irony. And the goal is if we’re trying to drive up credit score and we’re not actually using the credit cards – remember, the credit cards need to be active – does that mean I need to use them every month? No, it doesn’t. It means you simply make a payment each month.
Making a payment each month is activity. And if paying $1 more than the minimum payment, shows greatest capacity to drive up credit score over that period of time.
When the credit card is paid down to nearly nothing through that strategy, get yourself another tank of gas, come back home, pull it back out of your wallet, put it in your file cabinet or your safe, and start the silly game all over again.
About The Author: Scott Letourneau is the CEO of Fast Business Credit, Inc. When it comes to securing cash and vendor lines of credit and avoiding costly mistakes his company is the authority. For further assistance regarding the development of business credit go to http://www.FastBusinessCredit.com or call FBC at 1-888-313-6333 or 702-977-5246.