Credit Card advice! * building credit*?

I am 20 years old,Okay I have this capital one mtvu credit card i applied for at 1 of those college things, ive had it for like a year and some change but I forgot I activiated it, it is activiated and has never been used, so I was asking around for advice on building credit for my future and I kept hearing mixed things, someone was telling me my credit was bad because I have a card with a $2,500 allowance thats never been used so it appears that I owe $2,500... that makes no sense but thats what he said. Another person said that I can make my credit score go real high by buying something like $100 paying it off immediatley and then cancelling the card. but that doesnt make sense to me either, I figured if I bought gas on pay day with my credit card then went online and payed it off all the time that would be a good idea would it? Someone else told me to never let a balance over go a pay period and to pay the entire balance before a month no matter the payment asked.. IM SO LOST HELP ME!!!!!Credit Card advice! * building credit*?
The best and easiest way for you to build credit at this point, with this card that has never been used, is to:





First, make sure the account has not been closed for non-use. Some credit card companies do this if the card is never used, or has not been used for a certain period.





Second, if it's still open, charge up to whatever is comfortable for you to pay over the next two months ($100 is a good amount, guaranteed NOT to get you in over your head). DO NOT pay off the bill every month, this will NOT raise your credit score. What helps to raise your credit score is carrying a balance over a couple months. Because that shows that you have the ability to make payments. But, in order for this to be successful, you must pay MORE than the minimum payment, and at 7 days BEFORE it is due. The payment 7 days before it is due, helps with the credit score because of the cycle the credit card companies report to the bureaus on.





Third, if the card is still active, DO NOT, under any circumstances cancel the card! Another thing that helps to build your credit score is showing a credit history - even if you hadn't used that card until now, it shows you had it - - and that is what counts. When going for an auto loan, or any other type of installment account (where you pay a fixed pmt every month), in order to get credit on your own, you need at minimum these days - 36 months (that's THREE YEARS) credit history, whether it be good or bad. So, if you start using the card in small amounts monthly, and perhaps carrying over $30 of the $100 - in just one short year, you'll have outstanding credit, and a credit history that many 'kids' your age would die for!





Good luck dear, and if you need any additional help, go to:





myfico.com - that site has a WEALTH of information, and tips / tricks from people who've been there, and done it!Credit Card advice! * building credit*?
ok, definately use the card. using it for gas and small purchases only is a great starting point. but, don't pay it off that same day or all the time. you should keep a balance on it (even if its small) and continue to make payments on it. i have been told that this is a great way to build credit bcuz the banks earn a little bit of interest off of you.
All i know about credit cards is that is real easy to get into debt and it can take years to pay it off . I say if you want to develop good credit go to your bank and talk to a loan officer about it.