LG asked:
If, when I make a credit card charge, I pay off the balance in its entirety as soon as the charge is posted (usually 3 days later), is that helpful in terms of building credit? Doing it this way avoids any interest fees.
If, when I make a credit card charge, I pay off the balance in its entirety as soon as the charge is posted (usually 3 days later), is that helpful in terms of building credit? Doing it this way avoids any interest fees.
Do I need to wait for the credit card company to tack on interest before making the payment and improving my credit?
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Paying it off is always good!
Yes it is good. No you do not have to pay interest to build credit. The two things that add up to good credit are not using a large amount of your available credit (say less than 20%) – in this case you use 0% (or close to it), since you do not keep a balance. The second thing is how long you have had the account and kept it in good standing (no late payments, etc.). The older an account is, the better.
No, you must keep some sort of balance, even if it’s only a few hundred dollars. To have good credit, you must borrow something. You can’t pay it off in its entirety.
definitely not! the credit card company doesn’t tack on interest unless you don’t pay in full by the time your bill comes. I ALWAYS pay my credit card off a day or two after i make the charges, it has built up my credit really well. definitely don’t wait, you are doing things exactly the right way now!
No.. paying the full balance each month is best
Absolutely not. Paying off your balance every month will help you build excellent credit. Why pay interest if you do not have to?
good job you bet it’s the best way
yeah what your doing is having no effect on your credit good or bad if ou want to build your credit wait a pay it off over 3 or 6 mos not right after you use it or buy a car or house dont be so scared just use it responsibly
No, you don’t have to. As long as you make the payments and are in good standing you will build your credit.
Also, as long as you keep them open and do it every once and a while, it will look good on your credit. If you close the account, it won’t look ‘bad’ but it won’t do any good either.
Keep doing what you’re doing and you’ll be fine.
The sooner you pay off your credit card bills, the better!
Once your overdue bills get to a creditor, it damages your credit. But the longer you wait, the more it damages your credit. You should start to pay them off right away, and as soon as you can.
I good way to restore credit is to get a Credit Card for a store in the mall or in town that you never go to. Then once a month buy something for like 10$ and pay it every month. It is a great way to build credit.
Good Luck!
Paying it off right away helps your credit rating.
What the banks are interested in, is volume of debt you can handle. So the more you can use your card, and still pay it off on time, the better.
Do it, and credit card companies will love you.
No, paying it all off every time is EXCELLENT for your credit… it’ll also help build you a more credit rate for the credit card itself.
NO NO NO. What builds good credit is paying consistently over time and on time. While it’s fine to pay more than the minimum (and you should), if you pay it all off at once, that is not a credit card, that is a CHARGE card like American Express.
paying off the credit card every month is good for you but not so good for the credit card company that really makes their money by the interest they charge. that will put you on their radar screen, and sometimes it will effect your credit score in a negative way.
Yes. it helps.
Normally with most credit grantors they like to see at least six payments made over a period of six months before actually giving a rated of good,satisfacory etc. I think in the case of revolving credit such as credit cards as long as you pay on time or before and you do this for the period of at least six months the same would apply.
It does, and it doesn’t. Your credit report will show the last payment that you made, and it will show the highest balance the card has had as well as the balance the last time they reported to the agency.
It’s better to carry less than 1/3 of the amount available, and more than fifty bucks. Having a monthly amount due that you pay(albeit a small monthly amount due) looks better on your credit. I’d put a small purchase on it, then pay it down, and charge another purchase once it gets down to fifty bucks.
It helps your credit in that the ratio of debt you have to the amount of credit you have available is kept low. You don’t want to be using more than two thirds of the credit available, because that looks like bad money management.
Pay before you accumulate interest and you still build credit. If you carry a balance for too long, or the balance is too high, it can hurt your credit. Also, too many credit cards can hurt your credit.
No…what anyone doing a credit check is looking for is the balance carried and how often you are late. I just charged over $1,600 on my cc for some car repairs and will pay it off when it comes in. Use their money for 30 days while yours earns interest.
You just need to wait for the bill then pay it off . As long as they receive in time that’s all that matters. Its when you dont pay or make a late payment it alters your rating.
Also dont have too many credit cards ,dont sign up for a card unless you intend to use it .The more you apply for the more chance you have of being rejected and this will lower you rating. I have worked for 2 credit card companies.
The best way to use credit cards is to use them for every day things, never exceed 30% of your credit limit in any given month and pay them off in full before the due date.
Wait for your statement to come and mail your payment at least a week before it’s due, this way you will never pay any interest and the differiance between your statement date and due date will always show a small balance.
I have done this for the last 2-years with 2 cards and my score went up over 150-points.
If you are going to pay for each item individually every few days you might as well not have a credit card.When the statement prints and shows no balance then it hasn’t helped you at all.
All you have to do to avoid interest charges is to pay the paper bill in full by the due date, Stop driving yourself crazy with this nonsense. Wait until you get the bill and pay it. You will not be charged interest and it will help your credit by having the statement balance reported each month as well as an on time payment. The trick is to pay in full, not just the minimum payment.
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Good luck!