Is using a credit card(s) for all your transactions throughout the month, then paying them completely off at the end of the month, a good method to improve your credit score?
2007-02-09 06:12:48 · 6 answers · asked by rxsuperhero 2 in Business & Finance ➔ Credit
Yes.
2007-02-09 06:16:53 · answer #1 · answered by Anonymous · 0⤊ 0⤋
No. Credit is basically determined by looking at your payment history. You are not establishing a history by paying off the amount each month. Try making a purchase and paying it off over 6 months or so. If the purchase is large enough make double payments to help pay it off sooner (but still longer than 6 months). This will establish a history and show that you are able to exist within your means of income.
2007-02-09 06:23:17 · answer #2 · answered by Richard Bricker 3 · 0⤊ 0⤋
yes, it is a good way to run the bill up and pay it off completely. but they also like to see a lot of small payments. so you can charge to the card for 3-4 days, make a $20-70 payment, charge the card another few days make another one of those payments and etc, and also a plus to have it paid off completely by the end of month.
2007-02-09 06:25:48 · answer #3 · answered by jpcjulia 4 · 0⤊ 0⤋
It's a good balance between improving your credit rating and not spending money on interest payments. The best ways of improving your credit rating generally require steady payments and having to pay interest, but paying interest isn't good for you.
2007-02-09 06:21:46 · answer #4 · answered by Peter E 4 · 0⤊ 0⤋
Yes and no. You are more to improve your credit score when they see you make regular payments. What I mean by this is they prefer to see someone make a $30 payment every month on a regular basis then see you fluctuate in payment amount.
2007-02-09 06:18:43 · answer #5 · answered by Jen 4 · 0⤊ 0⤋
Yes, especially if your payments are timely and consistent.
2007-02-09 06:16:28 · answer #6 · answered by WC 7 · 0⤊ 0⤋