OT: Someone please help me understand a detail about credit scoring.

[KenB]

IF you use it every month and pay it off every month it does definitely help your credit score. If you use it once, pay it off and don't use it again for a few months it does not help as much. That is what I meant by carrying a small balance on it, especially if you have only one card. Building credit takes time but is easier than RE-building it. Your credit score is also affected by your income to debt ratio, how long you have been at the same job or in the same line of work if you change jobs and how long you live at the same address...many things.

All of the advice that has been given here is good information, do what suits your situation the best. I wish I could have learned this way when I started. Back then, (as today,) it was:

"Hi, I'd like to borrow some money to buy a car to go to school and work."
"Sorry, we can't give you any credt."
"Why?"
"Because you don't have any credit history."
"How can I have a credit history if nobody will give me credit?"
"Well, first you have to borrow some money."
...pause, while brain processes this exchange.
"Gun, please."
..and so on...

Best of luck to you, as long as you're not a deadbeat, you'll do fine.

[Ross]

Dan,
I viewed this after reading your post about the dealer salesmen and hope it's not too late.
First, stick to your guns with the salesman. His job is to extract every penny he can from you as he will likely never have another chance.
Second, don't worry about your credit score so much. If you pay your debts your score will improve. Your age and limited time in the consumer world are against you,not much you can do. You are rated the same if you pay no interest or only the min. payment, you are expected to PAY is all.
A higher credit line will be offered in the future if you pay on time. The card co. gets a piece of the action on your purchases too. The more they allow you to spend the more they get. They need a certain amount of people who pay their balance. You are doing the right thing.
Get your auto financing from a bank or credit union. Don't overextend and all will be well. Good luck!