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Originally Posted by dimbulb
Is there any reason why you want to carry a balance on the card? You can still build a credit history without carrying a balance.
It seems that your expenses match your ability to pay. So instead of carrying a $100 balance on your card, how about aiming to have $100 in savings. When you reach $100, spend it down to $20 and start saving $20 more a month.
Exactly the same as what you're doing now, but without the interest (which at say 15% of an average balance of $50, works out to be about $7.50 a year. Thats a movie ticket!)
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I don't really spend much at all, so all my money goes into savings anyway..
I like to start at $100 and pay my way down so that I get used to paying things consistently on time every month, and also in the habit of paying the bill on time to avoid my percentage rate being increased to something ridiculous.
Also, it's a practice of self control for me. I like knowing that I have a credit card with a limit of $1k or more, but that I am not taking advantage of it, and getting deeply in debt.
I'm very frugal with my spending, and outside of cell phone, gas, and a few bill payments, I honestly can't remember what the last material thing I purchased was. I bought a book on Sunday for $14.
I basically like the idea of having a little debt, so that I can pay it down periodically and get into good habits. I don't need to use the card, but the added benefit of getting a small percentage back on gas and groceries, as well as getting into the habit of paying bills promptly, while avoiding the temptation of going deeply into debt, and also slowly building a positive credit rating, is something that appeals to me on many levels.
Also, I'm under the impression that "actively" having a credit cards requires using it, or making monthly payments on it, and that is also partly why I choose to use it for gas and occasionally groceries. By actively using, and making payments, on the credit card, it is "active" and thus helping my slowly improve my credit rating.