For example, if my online statement says that my "statement ending balance" for the billing cycle is $1,000 and my "current balance" online is $1,500, would paying the $1,500 in full (even though only $1,000 is due) hurt my credit score? The extra $500 will go onto the next month's bill, but I have the money now and can pay it all off. I would appreciate your help!
2007-02-05 04:21:24 · 10 answers · asked by schenzentea 2 in Business & Finance ➔ Personal Finance
I thought paying off a credit balance too early would hurt? For example, If I used my credit card to pay $100 on the 10th, and then go online on the 12th and pay it off, wouldn't that hurt me? Is there a certain time for the credit balance to "marinate" in a way to show the credit card company that you can actually hold a balance?
2007-02-05 04:41:17 · update #1
No! Paying off your credit card balance each and every month is a GOOD thing. Can never hurt you because credit card debt is one of the worst things to carry around.(ridiculously high interest rates for short term use of their money!) It also looks good to credit bureaus if you pay off your statement each month BUT if the balance is too high, at the very least make the MINIMUM required payment and no less and remember you are going to keep paying interest on the unpaid amount. Pay what you can afford but be very careful. I have 2 daughters just experiencing their first credit cards and I work for a financial institute in the financial planning area (insurance investments etc) and when doing a financial plan for others, that is the key thing to do>consolidate your debts but always make the MINIMUM payment at the very least. If you can pay more, always do. If you overpay one month due to a crossover in the last payment and the credit showing up on the statement, they will issue you a credit so you wont have to pay so much next month! Credit is a necessary evil in today's life but you must be very cautious not to over do and get yourself in to a credit card hell in trying to pay it all back.
2007-02-13 04:15:32 · answer #1 · answered by bunncat 2 · 0⤊ 0⤋
You should pay off your credit card balance every month if possible. Your credit score is a combination of debt to income ratios and your payment history. Keeping a balance and slowly paying it off is a myth. As long as you have a card with activity on it...the ending balance does not effect your score per se unless you are late on a payment. The lower your ending balance, the better because it does help your debt to income ratio.
2007-02-05 21:31:05 · answer #2 · answered by gatorgrad99_99 3 · 0⤊ 0⤋
Paying more will not hurt you. Making on time payments is what helps increase your credit rating. When you have a low outstanding balance and a high credit limit coupled with on time payments, this really drives your credit rating up. Late payments are what drives credit ratings down, example 30, 60, 90 day lates.
2007-02-05 12:29:19 · answer #3 · answered by Jay 1 · 0⤊ 0⤋
Do yourself favor and pay off your credit card balance as soon as you can. Every penny that you carry over is costing you money in interest payments. Instead of calling them Credit Cards they should call them Loan Cards. You are actually borrowing money from the bank--it's a loan. The quicker you pay off the loan the better your credit score. Banks hate people who pay off credit cards right away because they make no money off them.
2007-02-05 12:44:08 · answer #4 · answered by schuby 3 · 1⤊ 0⤋
pay it off. will increase your credit score. just make sure you can pay all your bills on time that month too. for instance if you pay it off but you will be 50.0 short on another bill pay the 50 on the bill you need to pay in full and 1450 on that account. everytime you pay extra on an account it raises your credit score. if it is only 5 dollars it doesn't matter because they don't take into consideration the amount only that you paid extra. as counts as points.
2007-02-12 17:56:08 · answer #5 · answered by Shelly t 6 · 0⤊ 0⤋
I've done this before and don't think it hurt my credit score. The thing to remember is to not send 2 payments in one month. I've heard of someone doing that b/c he was going on vacation and b/c 2 payments were proceed w/i 30 days, it looked like the next month had 0 payments.
2007-02-05 12:30:29 · answer #6 · answered by Michelle G 5 · 0⤊ 0⤋
Paying more that you owe (statement balance versus current balance) does not hurt your credit score at all.
2007-02-12 20:24:45 · answer #7 · answered by lg 1 · 0⤊ 0⤋
Pay it off! Your credit rating will thank you!
2007-02-09 14:24:31 · answer #8 · answered by jakacic2001 2 · 0⤊ 0⤋
I'd pay them off and cut them up....you'll ber much better off in the long run
2007-02-05 12:34:34 · answer #9 · answered by Anonymous · 1⤊ 0⤋
No.. if anything it would help.
You are lowering your overall debt. Your debt is what it it is, it has nothing to do with the monthy cycle.
2007-02-05 12:25:34 · answer #10 · answered by Anonymous · 0⤊ 0⤋