What about asking for a credit limit increase? Can you ask for it? Will that hurt your score? "Only the credit card companies want you to keep a balance, because if you don't keep a balance, what are they going to charge you? There's no fees when you pay off in full." You might have heard it's good to keep a small balance, but Aliche says that's a misconception. Aliche recommends you call your bank or credit card company directly and ask them what the statement date is. It can sometimes be hard to find your statement date, though. If you can beat them to the punch and pay off the card before it's reported, you can use more than 30% of your spending limit. The statement date is the day that credit card companies notify the credit bureaus of your card usage. Your statement date is different from your payment due date. If you do need to use your full credit card limit, one way to get around this is to pay your balance before your statement date. And for some reason, that makes your credit score go up. That shows the credit bureau that you don't need all of their credit. If you want to increase your credit score, though, you need to spend less than 30% of your spending limit. If you have a $100 credit card limit and you only spend $30 each month, that keeps you at 30% utilization of your card, and the credit score people like that. So if you have a good credit score and you want to maintain it, spending 30% of your credit card limit is fine. Just add them as a user - with no card - to boost their credit score. Technically, you can give this authorized user access to your physical credit card, but Aliche recommends you not do that. If you want to add someone on as an authorized user, call your bank or credit card company and ask to add an authorized user onto your credit card. We're just using it to boost their credit score." "Really the point of an authorized user was to give younger folks access to a card that they would not normally have access to. So you want to make sure that you are an authorized user on someone who pays off every month in full," Aliche said. "Yes, you can inherit the good behavior, but you can also inherit the bad. and you will inherit their good credit from that card. They can add you to their credit card as an authorized user. If you have no credit, little credit or bad credit, a parent, friend or family member (who pays their bills on time and has good credit) can do something to boost your credit score.
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