I just used my credit card for the first time, I want to pay the $200 of at once but people say i shouldn't?

Question

They're telling me it builds credit if I pay montly and on time. My question is, as long as it gets paid, who cares? Should I pay monthly or what?

I just don't like the fact that I owe money

Answer 1

Pay off the full amount every time. You will build your credit and have a high score because your debt ratio will be low. DO IT

Answer 2

This a case of two things: 1. You should not make credit decisions based on how it might tweek your credit score. I mean what are you going to do, speculate on how your score might go up or down 1 point every time you need to buy somthing with your card or make a payment?
2. Credit scores are very complex calculations related to many variables. So don't over engineer it.
What do you do:
1. Pay on time.
2. Limit accounts you apply for.
3. Use an account, but don't max it out or carry a balance for a long time.
4. Open an account with a company you think you will like and keep that account open for a long time.
5. DO NOT EVER cosign for any account or open a joint checking account with anyone.
6. Don't get scammed. Go to ftc.gov for education.
7. Deal with minor credit issues right away, like medical and dental bills.
8. Be careful about what contracts you sign, cell phone, gym, magzine subscriptions, etc.
9. Avoid auto debit deals like a gym, movie clubs, etc. These always cause problems.
Good luck

Answer 3

You should always pay it by the due date to avoid finance charges and fees, and holding a large balance and making minimum payments, as far as I know, doesn't look good on your credit. I think it's something about debt to income ratio. If you have a couple credit cards you use and pay off every month, that's better than having two or three cards with a few thousand dollars on each and paying minimums on them each month. If you try to buy a house that will come into play with terms and rates because it shows that you have all this debt that you're struggling to pay. This is as it's been explained to me by a financial guy when I went to buy a house. At least this is what I understood.

Hope this helps. Pay off each purchase before the due date or as soon as you can.

Answer 4

Keeping it on your card and showing that you are capable of meeting the monthly payments will incresae your credit rating. However, this will benefit the credit card company more than you, with the extra you will pay in interest. Your credit rating must be Okay just now or you wouldn't have got the card in the first place. Getting into debt in order to borrow more is a really a false economy so if you are able to pay it off then you should. This won't have a negative effect on your credit history, it means it won't rise as fast.

Answer 5

they are right and wrong - your credit limit is on your credit bureau. A big part of your score is determined by the amount of debt you have on your credit cards versus the limits. So you want to keep a very small balance to keep your accounts reporting every month. I like to pay my credit carde companies an extra $5-10 so they owe me the money, i get a statement in the mail, and they report every month. if you have the money pay it down to $20-$50 balance. just make sure you pay it and do not go over your limit - you will be charged a bunch of fees and your score will suffer pretty bad. I hope i helped

Answer 6

Not paying off your credit card isn't good credit, it's good debt...and there's no such thing as good debt. It's better to get in the habit of not needing a debt card in the first place, which I'm sure you already know. If you want good credit, buy a house and make your payments on time. You can also check out one of those credit card FICA score companies that tells you exactly what your credit rating is....then you can know for sure where you stand.

Answer 7

I pay my credit card bill before the billing cycle ends. The best way to build good credit is to use it once a month and immediately send in a check for what you charged. I have a friend who pays the entire bill every month, except for a penny. I can see his logic - it keeps the card active and how much is the interest they charge on that penny?

Answer 8

don't listen to them. Pay it off as soon as you can - right away.

This will give you a better credit score (and plus you will know you aren't in debt).

Those people don't understand the system.

What they might be trying to say, more than anything (or what they might be thinking about) is that you do need to use the card regularly to improve your score, but by all means pay off your balance every month.

If you owe $200, then write out a check right now for $200 and get it to them at least several days before the due date.

Answer 9

Ask them how much are they paying off?! Pay if off right away. That is what will make your credit score shoot through the roof- very slowly but surely. I recommend reading some good financial books by Suze Orman or David Bach to educate yourself about finances. Good luck!

Answer 10

Pay it all at once, that too builds credit. If you want to make two payments to get it paid off that would be fine too but don't let it go any longer than that.