r/FinancialPlanning • u/Dependent-Nail8581 • 1d ago

In need of credit card help/tips

So I turned 18 and I’m getting my first credit card and wanted to build good practices, my credit line is set to 200$ so I did research and I understand I have to stay under 60$.My plan was using my credit card to pay a streaming service that will be 16$ every month and I would pay the credit card off when I had to, but my friend said I should use 25$ every week towards gas or whatever and pay it off every week so I don’t know which one would work best

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u/rjp0008 1d ago

Good practice is to set autopay full statement balance and never change it. You’ll never get charged interest, and build credit. Never have a higher credit card balance than your checking account and you’re set. You can spend $200 a month if you need to, utilization of credit is one of the least important things on your credit score.

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u/Informal-Bit-9237 1d ago

I beg to differ. Utilization is one of the biggest factors of your credit score.

That said, if he uses all 200 and pays it before the statement is generated, his statement will always show a balance of zero.

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u/rjp0008 1d ago

Yes it is important but can be adjusted on a 30 day timeframe easily.

Utilization has no memory, so if you’re at 100% for 5 years and then pay off everything, and go back to the “ideal” 10-30% usage on your statements reported to the agencies, it’s like you were using it that was for the past 5 years. https://www.cbsnews.com/news/how-credit-utilization-affects-your-credit-score-and-what-to-do-about-it/