The best way to use credit cards to build credit is to pay off the balance in full each Month.
There is a myth that paying interest on revolving credit balance helps to boost your credit score. This myth has been official busted. My first office job was working for a company by the name of Sitel Corporation where we sold credit cards, and collected debts for all the major credit card vendors such as Visa, Mastercard, and Discover. I learned at a very early stage in my life how to use 1 credit cards to boost credit scores. Below are a list of Tips on ways you can build credit with a Credit Card.
Credit Building Tips:
1. Use a Credit Card to pay 1 to 3 Utility Bills every month that you would normally pay with cash or from a debit account.
2. Do not think of your credit card limit as Cash on Hand. This is just a limit they will loan to you and require that you pay back. In short, it's a loan. Don't Do it if you can help it. Bank and Lenders make money off of you by making you pay high interest fees and penalties.
3. Do not hold a balance for no more than 28 days, Pay your credit card balance in Full each month. It should be easy because you are only using the credit card to keep Utility bills current and up to date, which you have the money to pay for anyway.
4. Never pay interest, or late fee if possible. Ask questions on how to avoid paying interest and in the event you are able to pay on time and recieve a late fee, ask for them to remove it as a curteousy.
5. Stay away from opening several credit card accounts. This also include merchant accounts such as those you will find a department stores and etc. This will help to keep your Income to Debt ratio at a attractive level in the event you want to use your credit to gain a mortgage or car loan.
Set up an Auto Bill Pay to pay off the Credit Card in Full Each month, so you do not make the mistake and forget.
Note: I'm not suggesting that you should get a mortgage or car loan, if you're wealthy enough use your own money and stay liquid without any real debt.