+4 votes
by (160 points)
Hello everyone!  Wanted some advice on a purchase I am making.Hello everyone! Wanted some advice on a purchase I am making. We are planning on buying my daughter a bed for about $300? I have the cash but I’m wondering if I should use a credit card that no longer carries a balance and just pay off the balance in full. My credit score has dropped due to many credit cards with high balances and I’m trying to get it up? Does this actually help raise it now that I have lowered/paid off some balances or should I just pay cash for the bed? Thanks in advance for any suggestions/advice!  
Hello everyone!  Wanted some advice on a purchase I am making.

3 Answers

0 votes
by (150 points)
Yes, you should put it on the credit card. From my understanding/experience, as long as you aren’t negligent with credit cards they can be awesome credit building tools. As long as you don’t get tempted to keep spending!  
0 votes
by (150 points)
Id say pay cash and leave the credit cards at a zero balance they still help build credit that way.  
0 votes
by (250 points)
If your limit is high enough, it'd be helpful to leave it on the credit card until the statement comes out. If you buy it, then pay it off right away it may never even report to credit. The credit card companies only report what is on the statement, so leaving the balance until then would be the best option if you will be at less than 30% utilization.  
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