Like90 asked:
I want to preauthorize monthly payments on my credit card for my student loan. Will this actually make my credit rating better? Do you think I should do it?
I have the money to pay for the payments, I would just prefer the payments to be made on the same day every time. My credit is good, but I would like better credit as I’m planning on buying a house in the near future.
http://1mortgagecalculator.info
I want to preauthorize monthly payments on my credit card for my student loan. Will this actually make my credit rating better? Do you think I should do it?
I have the money to pay for the payments, I would just prefer the payments to be made on the same day every time. My credit is good, but I would like better credit as I’m planning on buying a house in the near future.
http://1mortgagecalculator.info
The one thing that matters most is that you charge a little something each month and you pay in full when the bill comes in.
Carrying balances is what destroys credit and in some cases destroys lives.
What you plan to do is fine – If you plan to pay in full every month
In a couple of years you could end up with amazing credit.
Before you buy a house, make sure your credit card balances are close to 0 as possible. Pay ahead if you can. Check your reports once a year at annualcreditreport.com. Get the score from Equifax.com for 8 bucks. Don’t open any new credit 6 months before your home purchase.
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Probably not. You would actually be creating more credit by using your credit card. Even if you pay on time it still looks like you have more debt.
This by itself will not help or hurt your credit. The important thing is that the payments are being made on time. You could do this on your own, but automatic payments are easier as long as you remember to deduct them from your account. Some student loans will actually reduce your interest rate after a year or so if you use the automatic payment system. Good Luck.
So you wish for your credit card to automatically pay your student loan payment every month, right?
Assuming you would make that student loan payment on time anyway, it’s not going to help, and in fact can hurt your score. It could hurt your score by raising your ratio of credit balance vs. credit available on your revolving lines of credit.
Although it might provide more payment history with the credit card, don’t count on this to boost your score. It might be a convienent way to make sure the student loan is paid on time but you still have to pay the credit card.
Make sure the credit card isn’t going to view those loan payments as cash advances with cash advance fees (3% to 5%) and higher interest rates that accrue immediately. It could be a pretty expensive convenience.