Building credit...if i pay my credit card balances in full do i get the same ammount of?

Question

positive credit that i would get in making minimum payments ?

Answer 1

Your credit history buids up over time, time you spend making payments on your cards and other outsdanding lines of credit. In this way, if you pay off your card in full and then don't use it anymore, you won't really have any credit building up beyond the month you paid if off in.

However, if you keep using it but pay it off in full at the end of each billing cycle, yes, not only will your credit history keep increasing but you'll also be paying next to nothing in interest. Credit cards only get you when you carry a balance.

There is a benefit to carrying zero balance though: it increases your credit score, which is not the same as credit history. This score is more reflective of your current situation, and will be one of the things creditors look at before issuing you credit. So if you're about to apply for anything, paying off your credit card a week before that or so is a good idea.

Answer 2

The best way to build your credit is to use only what you can pay off when your bill is due. When making the minimum payments only $5-10.00 goes to the actual balance and the rest go to interest and finance charges. So if you want to pay your bill down you need to pay at least 40 to 50 dollars over the minimum. Some may say to carry a balance for 2 or 3 months and then pay it off. That is fine but you don't want to add to the balance and it be more than what you can afford. Try to keep your balance under a hundred dollars or so. You have to be very disciplined on your spending with credit cards because it is so easy to get in over your head. Good luck.

Answer 3

I've always heard "no." Because if you are paying your balance in full, the credit card company isn't making money off your interest.

I've found that the best thing to do is to pay above the minimum payment, but avoid paying off the entire balance with one payment. This way, a credit check will not state "makes minimum payments" which could look negative to some creditors. By making above the minimum payments regularly and on time, you'll build good credit in no time.

Answer 4

Pay in full is always better than making minimum payments. You are a credit risk for a house, if you can't even pay off a credit card bill. A good long-term debt to carry is student loan and mortgage. A credit card debt only shows that you spend more than you make. It is all about demonstrating financial responsibility.

Your highest monthly spending amount for a credit card shows up on your credit report, you can try to charge everything to just one credit card and pay it off. I have heard that this helps a little to increase your score.

Answer 5

Not exactly,...but in a way. It will show up on your credit report in exactly the same words and have exactly the same code. It will say - "paid as agreed" or something to that nature.
But,...when people are looking at your credit report, they will see your high balance every month, and if you are maxed out or if you paid it in full. Future creditors love to see you paid it in full. That means you are a good credit risk.
But also, the credit "score" will be higher because their will be a lower "debt to income" ratio. The higher the score the better!!!!
You would be just as credit "worthy" making minimum payments as paying in full, but your score will go up paying in full. Creditors will give you credit faster and higher credit limits if you pay in full - and they see that on your credit report.
Note: On none of the credit reports that I've viewed (of mine every year - 3 per year in the past 7 years) did it ever state "makes minimum payments"...but it will show the amount of the last month's payment....

Answer 6

It isn't close to being that simple. It is more important for you to pay all of your cards down to less than 25% of the balances than paying one off. Also, if you are trying to build credit, you should carry a very small balance on your cards, something that you can pay off with your extra income every pay check.

Whatever you do pay more than the minimum payment every month so your credit report states that.

Answer 7

murzun's got it right. I'm in my early 30's and have a very high credit score. I charge almost all my purchases and pay it off in full each month. The debt that you need to pay off over time to build your credit is not from credit cards, its from things like, student loans and car payments - installment accounts. Those are the ones where you make the required payment on time every month to help raise your credit score.

Answer 8

yes and no...paying your bills on time is good...but when you try to apply for more credit or a credit line increase...creditors will look at the fact that you're only paying the minimum amount due and may feel that you won't be able to handle more debt. plus, if your charges have interest attached to them...like most credit cards do...you're really only paying off the interest and not the principle...which could take you a long time to pay off the card...credit card companies count on this because they can make more money off of you that way...so pay more than the minimum whenever you can...its actually better...

Answer 9

Your credit is based on your rating. They look at how long it took you to pay, if you were late paying etc and your credit is based on that. If you make a minimum payment on your credit card you will never get it paid off. You need to pay more than minimum.

Answer 10

Generally yes, but another factor to consider---Credit score also looks at your overall debt, so if you are making min payments on a lot of credit cards, vs. paying them off in full, yr credit will be better scored better if you paid in full

And why would you pay the min. and pay 18-25% interest on the balance? That is irresponsible.